Fears Chinese mega developer Evergrande’s collapse will spark a contagion event, plus the ongoing European gas crisis has hit confidence, driving a ‘Risk off’ slide across currencies and demand for the safe haven denominations, USD and JPY.
The greenback has been helped in September by the US Fed Chair Jerome Powell, who signalled that the bond tapering is expected to start in November. Bank of America commentators see this leaves the door open to interest rates hikes starting mid 2022.
Dollar strength and declines for stock and some commodity markets saw the single currency on the decline and within distance of 1 YEAR LOWS versus the greenback below 1.17.
September’s key political event is the German General Election, scheduled for September 26, which will signal the end of Angela Merkel’s 16-year tenure. However, this is unlikely to cause much volatility in the euro as a change in leadership should be relatively smooth. USD-EUR Forecasts
The spread of the Delta variant in Australia plus the Evergrande property debt crisis in China has forced down commodity prices particularly iron ore, further compounding AUD losses. AUD Overview
In 2021 forecasters have changed direction several times on the Australian dollar saying it could fall below US70¢ or hit US82¢, which leads one to suspect that basically no one has any idea! AUD-USD Forecasts
Changing expectations around US Federal Reserve policy and a less positive outlook for global growth continue to weigh on the Aussie to Euro rate, despite the single currencies own problems with increased gas prices heading into winter. AUD-EUR Forecasts
The energy crisis combined with a ‘risk off’ market sentiment has pushed the Pound down against the Australian, New Zealand and Canadian Dollars. These currencies that normally are vulnerable to ‘risk off’ events, showing the impact of the gas crisis in the UK. GBP-AUD Forecasts
The souring of risk appetite almost always sees the AUD/JPY pair push lower. The Australian Dollar normally strengthens when risk appetite is healthy while the opposite follows. As for the Yen, it’s the opposite. The Japanese currency will rise when risk appetite sours. AUD-JPY Forecasts
In 2021 the Canadian dollar has risen as a global economic recovery takes hold, with larger gains if the Bank of Canada is seen to be preparing to reduce monetary stimulus, economists say. CAD Overview
After outstripping its G10 counterparts in the first six months of 2021 the loonie has been one of the worst-performing developed-market currencies in the second half of the year. USD-CAD Forecasts
Higher gas prices pose problems to UK consumer spending as well as industrial production, all of which argues for delays to any interest rate rises being considered at the Bank of England – which is negative for the pound. The Pound-to-Euro exchange rate fell to two-week lows at 1.165. GBP-EUR Forecasts
Deutsche Bank say the Pound Sterling is already feeling the impact of an emerging energy crisis. GBP Overview
The British Pound has dropped against the safe havens of the Dollar, Yen and Franc, as well as the Euro. Due to a risk-off mood after the possible collapse of mega developer Evergrande and persistent fears of a global economic slowdown and a European gas crisis. GBP-USD Forecasts
The energy crisis combined with a ‘risk off’ market sentiment has pushed the Pound down against the Australian, New Zealand and Canadian Dollars. These currencies that normally are vulnerable to ‘risk off’ events, showing the impact of the gas crisis in the UK. GBP-AUD Forecasts
Where do you want to Save Sending Money?
The Mexican Peso’s recent rebound was held back by weaker economic data on the Mexican economy. Going forward surging delta variant COVID-19 cases and the relatively low vaccination rate for Mexico may continue to hold back the Peso. USD-MXN Forecasts
The Japanese yen has continued trading against USD between 110 and 109 in September, influenced by dynamics pulling in different and opposite directions. USD-JPY Forecasts
In late September the USD/CHF pair has dropped below 1.09 (it’s 90-Day average) hitting a low of 1.07. There was then some reprieve in the risk-off market sentiment helping the Swissie back to the 1.08 level vs the greenback. CHF Forecasts
The Singapore dollar hit a 14-day low below 0.74 US cents along with most Asian currencies after the hawkish tilt from US Fed Chair Jerome Powell, who on signalled the bond tapering is expected to start in November. SGD Forecasts
The Malaysian ringgit has fallen below 24 cents as a firmer US dollar kept Asian currencies subdued while escalating woes at indebted developer China Evergrande switched markets to safe haven mode. MYR Forecasts
The New Zealand dollar has recovered from it’s dramatic sell-off in August and has traded between 0.70 – 0.715 USD in September. NZD Forecasts
The Federal Reserve’s message to the markets that it was preparing to reduce bond purchases sent most USD/Asian and Emerging Market Currencies higher. INR Forecasts
The rupee has weakened in September back to 73.5 – 74 per USD, after powering ahead in August gaining almost 2% as speculation grew that the central bank was relaxing its control over the currency. USD-INR Forecasts
Articles that mention the Chinese yuan (CNY):
News2025-04-11
Swiss Franc Surges Amid U.S. Tariff Escalation
The Swiss franc has experienced a significant surge, reaching a decade-high against the U.S. dollar, following President Donald Trump's announcement of increased tariffs on Chinese imports. This development has intensified market volatility and heightened demand for safe-haven assets.
News2025-04-10
Yuan's Volatility Surges Amid U.S. Tariff Escalation
The Chinese yuan has weakened following the United States' decision to impose a 125% tariff on Chinese imports, prompting the People's Bank of China to intervene to stabilize the currency.
Further reading on the Chinese yuan (CNY) - Guides, Reviews & News from our research team.
Disclaimer: aPlease note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.