FOREX.com Analysts Expect Rocky Road for Currency Traders Heading into Third Quarter 2010
By Forex.com, PRNEMonday, June 14, 2010
Major Stumbling Blocks Are Weak U.S. Economy and Eurozone's Fiscal Cutbacks
NEW YORK and LONDON, June 15, 2010 - The U.S. economy will remain weak as unemployment weighs heavily on the
economic recovery, according to data presented by FOREX.com, a division of
GAIN Capital, during its 3Q 2010 Markets Outlook webcast.
The FOREX.com analysts also predict that euro weakness will persist
throughout the third quarter and into 2011, with the Eurozone's fiscal
cutbacks undermining European growth and potentially derailing the global
recovery.
"With U.S. fiscal stimulus set to phase out in the second half of 2010, a
U.S. slowdown will decelerate the economic rebound and generate another dip
in risk sentiment, supporting the dollar as a safe-haven currency and keeping
pressure on the euro, the pound and the yen," said Brian Dolan, FOREX.com's
chief currency strategist.
Currencies that are likely to outperform include the Australian dollar
(AUD) and Canadian dollar (CAD), but they're also at risk if the global
recovery falters more seriously.
Other highlights from the FOREX.com 3Q 2010 Markets Outlook include:
-- Central bank interest rates in the U.S., U.K., Eurozone and Japan will remain on hold into 2011 given uncertainty from the European debt crisis and the absence of inflationary pressures -- Additional fiscal stimulus in China may be a salvation to the global recovery -- Oil is expected to weaken on excess supply and stalling demand -- The JPY may weaken as the new government seeks to limit its strength and presses the BOJ to undertake another round of quantitative easing to fight deflation
The FOREX.com research team also highlights potential technical levels
for key pairs, such as EUR/USD, GBP/USD, USD/JPY, USD/CAD, and AUD/USD. Key
cross-currency pairs like EUR/JPY and EUR/GBP are also covered, as well as
precious metals and oil.
The FOREX.com Markets Outlook provides commentary and market forecasts
with its view of the direction of the world's major currencies as well as key
commodities including gold, silver and oil.
The full FOREX.com 3Q 2010 Markets Outlook Report will be made available
on the company's websites later this week at www.forex.com and
www.gaincapital.com.
About GAIN Capital
GAIN Capital Holdings, Inc. is a global provider of online trading
services, specializing in foreign exchange (forex or FX) and contracts for
difference (CFDs). Customers and trading partners in more than 140 countries
have utilized the company's award-winning trading platform which transacts
nearly US$250 billion per month.
A pioneer in online forex trading, GAIN Capital provides execution,
clearing, custody and technology products and services to an institutional
client base including asset managers, broker/dealers and other financial
services firms. GAIN also operates FOREX.com, one of the largest and
best-known brands in the retail forex industry.
With offices in New York City; Bedminster, New Jersey; London; Sydney;
Hong Kong; Tokyo and Seoul, GAIN Capital and its affiliates are regulated by
the Commodity Futures Trading Commission (CFTC) in the United States, the
Financial Services Authority (FSA) in the United Kingdom, the Financial
Services Authority (FSA) in Japan, the Securities and Futures Commission
(SFC) in Hong Kong, and the Australian Securities and Investments Commission
(ASIC) in Australia.
GAIN's investor group includes private equity firms 3i, VantagePoint
Venture Partners, Tudor Ventures, Edison Venture Fund and Cross Atlantic
Capital Partners.
For company information, visit www.gaincapital.com or
www.forex.com
In North America: Savannah Tikotsky, +1-212-808-4903, or Christa Conte, +1-212-808-4902, both of Feintuch Communications, gain at feintuchpr.com; or In Europe: Laura Crooks, +44-(0)20-3047-2366, or Laura Cocker, +44-(0)-20-3047-2365, both of Edelman, gain at edelman.com
Tags: FOREX.com, June 15, New York, New york and london, United Kingdom