July 2019 Currency Outlook

Looking to the month ahead, while the pound’s focus will remain squarely on the Westminster political bubble, global focus will largely centre on ongoing US-China trade relations.

Global central banks released the doves in June, as the prospects of looser monetary policy increased around the globe with the Fed and ECB both opening the door to rate cuts and additional stimulus later this year. Elsewhere, the Brexit impasse continues with UK political uncertainties showing no sign of dissipating as the Conservative Party leadership contest continues, while US-China trade relations have deteriorated with rhetoric being ratcheted up on both sides of the trade war.

In the month ahead, monetary policy will continue to come under the microscope, with markets looking for any hints of rate cuts, possibly coming as soon as this month.

Find out more about what's in store for sterling and other currencies, in our July Currency Outlook.