Currency Outlook

JUNE 2020 CURRENCY OUTLOOK - IN BRIEF

What Happened

  • May witnessed a 1.5% decline for the buck as the world started re-opening post-quarantine
  • China/U.S. trade tensions back into play as new sanctions emerge from Hong Kong chaos
  • Joblessness abounds, yet indicators point at the worst behind us with a gradual return to business
  • As foreseen, the Euro rose by 1.0% with the help of an EU-fiscal rescue plan of €750.0BN
  • WTI Crude oil prices recovered by 60.0%, aiding the strongest performer, MXN, now up by 10.0%
  • Safe-haven JPY and CHF were muted with risk-appetite as Dow Jones Avg. grew 6.9% in May

Tempus’ View

  • June might be a month of reconciliation as China/U.S. help is needed for global growth
  • Major sports returning and partial access to social life will decrease unemployment
  • Our Euro forecasts to continue materializing if economic data improves with the combination of fiscal and monetary aid spurring recovery
  • Australian and New Zealand Dollar may rise further as China resolves inactivity woes
  • Sterling volatility is going to increase after a month in which the ghost of post-Brexit trade negotiation worries was revived and £ fell

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