Monex’s October 2022 FX Forecasts

Monumental. Historic. Chaotic. These are just a few adjectives that characterise the last month of trading in FX markets. Over the course of September, FX traders had to endure volatility that hasn’t been witnessed since the onset of the pandemic as the Federal Reserve upped the ante with its hawkish messaging, Asian central banks started to intervene to slow the depreciation of their currencies, and the latest UK budget resurrected the bond vigilantes. Although the dollar retreated towards the end of September, likely due to position trimming on month-end/ quarter-end, we think it maintains a firm structural basis to climb back to its September highs in Q4, however, intense cross-asset volatility may start to mask the underlying trajectory.

You can read our October 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.