Monex's August 2026 FX Forecasts

July closed out with FX interventions dictating price action, seeing coordinated efforts to strengthen the Japanese yen upending currency markets and overshadowing a busy month-end of central bank decisions. Accompanied by yet another Middle East ceasefire announcement from President Trump and a dovish Chair Warsh, this leaves the dollar notably softer at the start of August, with the DXY index down almost 1.5% last month. Looking forward, summer holidays in the northern hemisphere and a light calendar of central bank events would typically imply quiet markets in the weeks ahead. But multiple crosscurrents are set to remain key FX themes; we suspect August is unlikely to deliver the kind of calm that might ordinarily be expected.

Read our August 2026 FX Forecasts here:

Authors:

Nick Rees, Head of Macro Research

Barry van der Laan, Senior FX Market Strategist

Disclaimer

This information has been prepared by Monex International Markets plc, part of Monex S.A.P.I. de C.V. (“Monex”). The material is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is, or should be considered to be, financial, investment or other advice on which reliance should be placed. No representation or warranty is given as to the accuracy or completeness of this information. All entities in the “Monex” group of companies are regulated for different products and services within the jurisdictions in which they operate. Details of the different entities can be found here. Details of the respective entities’ regulated status and available products and services can then be found on the relevant links to the individual jurisdictions’ website.