Our general economic outlook for the rest of 2018 is for continued global growth with low but rising inflation worldwide. In this scenario, we expect major developed market central banks will gradually reduce the extraordinary level of liquidity in financial markets. There are risks of a sudden and unexpected rise in inflation and of trade tensions worsening into a wider trade war.

With these and other factors in mind, such as how US bond yields behave, the outlook for currencies bears a closer look.

Read our currency expert’s analysis to better understand the catalysts this year for the US dollar, Japanese yen, the euro and emerging market currencies.