Positive global growth to drive currencies in 2018

Global growth will be a key driver of currencies in 2018, a year in which the foreign-exchange industry will have to adapt to the strictures of Mifid II and a self-governing code of conduct.

If 2017 was all about keeping a close eye on outgoing Federal Reserve chair Janet Yellen for clues about US monetary policy moves, 2018 will be about taking a bird’s eye view of global growth and how that drives market moves.

Bank analysts at Barclays and Goldman Sachs predict global growth will hit 4% next year –an all-time high since 2011 – with economists at the US bank announcing the outlook is “as good as it gets”.

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Daniel Been, ANZ

Currency analysts like Daniel Been, head of FX strategy at Australian bank ANZ, are pinning currency moves to this predicted growth.

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