Monex’s November 2022 FX Forecasts

The peak in FX volatility seems to have passed, although we expect volatility to remain relatively high in November. With more stability in global rates markets and risks in the UK and China having abated, traders can pay greater focus to central banks as they balance the trade-off between fighting inflation and avoiding recession. The dollar has pulled back from this year’s highs, thanks to renewed risk appetite. That said, we expect funds to keep most of their powder dry until the Fed signals an upcoming pause in its hiking cycle. For now, our outlook on the dollar remains constructive until jobs and inflation data allow the Fed to downshift, which we expect at either the December or February meeting.

You can read our November 2022 FX Forecasts report here:

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Authors:

Simon Harvey, Head of FX Analysis

Jay Zhao-Murray, FX Market Analyst

María Marcos, FX Market Analyst

Disclaimer

This information has been prepared by Monex Canada Inc., an execution-only service provider. The material is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is, or should be considered to be, financial, investment or other advice on which reliance should be placed. No representation or warranty is given as to the accuracy or completeness of this information. No opinion given in the material constitutes a recommendation by Monex Canada Inc., or the author that any particular transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, it is not subject to any prohibition on dealing ahead of the dissemination of investment research and as such is considered to be a marketing communication.