August 2018 – IN BRIEF

What happened
  • Momentum came to a halt for the U.S. Dollar as July saw it lose 0.5% of its overall value
  • Tariff tensions continued and put pressure on the greenback, but domestic strength kept it afloat and prevented it from sinking further
  • Sterling remained under pressure after changes to U.K. cabinet and slow growth
  • Japanese Yen down by 1.0% as stocks flourished and Bank of Japan stayed put
  • Mexican Peso was the best performer of the month, overcoming hysteria after elections
  • Canadian Dollar strengthened 1.0% after the Bank of Canada hiked its main rate to 1.5%
Tempus’ view
  • August comes with plenty of holidays to businesses and legislative bodies, thus economic indicators will be main FX guidance
  • Lack of surge in economic activity may keep current ranges in check through the month
  • Pound may climb as a result of Bank of England’s expected rate hike and fading concern over a “hard” Brexit scenario
  • Euro will face trouble if Italian officials reiterate an interest in a “Leave” referendum
  • The U.S. Dollar may see another month of slight depreciation if other regions see improvement to their current situation
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