FOREX.com Analysts Predict Choppy Seas Ahead for Traders in Second Quarter 2010
By Forex.com, PRNEMonday, March 15, 2010
Foreign Exchange and Commodity Markets Analysis Presented in Quarterly Markets Outlook
NEW YORK and LONDON, March 16, 2010 - In its quarterly currency and commodity markets forecast, FOREX.com, a
division of GAIN Capital Group, LLC, believes the U.S. economy will continue
to improve and outpace the eurozone, U.K. and Japanese recoveries. The
FOREX.com analysts also see China's efforts to restrain its economy as a
major risk to the global recovery.
FOREX.com Chief Currency Strategist Brian Dolan believes that the global
recovery will mostly support investor risk appetite, but that credit risks in
the eurozone and the U.K. may lead to economic under-performance there,
likely causing repeated setbacks in stocks, commodities and carry trades. As
a result, the analysts expect short-term trading strategies to bear the most
fruit in the second quarter.
"We're seeing credit concerns shifting from the government level to the
private financial sector, especially to banks in the U.K. and Europe, further
impeding the European recovery," stated Mr. Dolan in the report. "We expect
the U.S. recovery to outpace other industrialized economies, likely lending
the dollar support and keeping pressure on the euro, the pound and the yen."
Other highlights from the FOREX.com Markets Outlook include:
- The current emerging markets and commodities rally may stall and the threat of a double dip recession may rise, if the G7 outlook deteriorates - Central banks' withdrawal of extraordinary liquidity provisions (exit strategies) could increase bank borrowing costs and expose unforeseen weaknesses in the financial sector, especially in the U.K. and Europe - U.S. and China will contribute about half of the overall 2010 global economic expansion - U.K. credit rating downgrade is a possibility especially with the looming threat of a hung parliament
The FOREX.com research team also highlights expected ranges for other 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.
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. In addition to Brian Dolan, the
report was prepared by UK Research Director Jane Foley and Currency
Strategist Jacob Oubina.
To view the full FOREX.com Second Quarter Markets Outlook report visit:
www.forex.com/2q2010report.
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$200 billion per month.
A pioneer in online forex trading, GAIN Capital operates FOREX.com, one
of the largest and best-known brands in the retail forex industry. It also
provides execution, clearing, custody and technology products and services to
an institutional client base including asset managers, broker/dealers and
other financial services firms.
With offices in New York City; Bedminster, New Jersey; London; Seoul;
Tokyo; and Hong Kong, 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, and the Securities and Futures Commission
(SFC) in Hong Kong.
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, Christa Conte, +1-212-808-4902, or Savannah Tikotsky, +1-212-808-4903, both of Feintuch Communications, gain at feintuchpr.com; or In Europe:, Sorrel Beynon, +44-(0)-20-3047-2368 or Laura Cocker, +44-(0)-20-3047-2365, both of Edelman, gain at edelman.com
Tags: FOREX.com, March 16, New York, New york and london, United Kingdom