Trading Forecasts
Dollar Forecast
What was once a consistent and dominant advance for the US Dollar is now a consolidation and debate over fundamental value. The Greenback still stands at the most hawkish end of the monetary policy spectrum, but that premium may already be incorporated. Will risk trends or rate hikes revive the currency in Q4 or is a correction overdue?
Euro Forecast
A period of range for the Euro may soon come to an end as investors cast their focus on the European Central Bank's effort to buttress the region's economy and financial stability. With global headwinds increasing and the Fed backing off its hawkish stance, a countermove for more European stimulus may drive the currency to lows not seen in over a decade.
Yen Forecast
A wide gulf exists between the monetary policy programs in Japan and the United States, and that disparity may resolve USDJPY's congestion. As Japan struggles to reach its 2 percent inflation goal, the probability of an increase to the Bank of Japan's QQE program rises - and the incredible driver of three years of Yen cross appreciation may be revived.
Gold Forecast
Gold has made an unsteady attempt to retrace lost ground amid the Federal Reserve's confusion over its interest rate bearings. An aborted effort to hike rates in 2015 could give the metal a more significant foothold for bulls, but the central bank doesn't seem as discouraged as the market seems to presume they are.
Oil Forecast
Many outsiders to the oil market have been scratching their head as supply continues to outstrip demand. A quick view of production growth into falling prices seems to go against classic market dynamics. However, there's a very simple answer although it may not appear logical at first. Individual producers in the oil field are continuing to drill in order to meet individual debt repayments while subsequent loans are dependent on production.
Equities Forecast
The years of steady advance for global equities to multi-year – and in some cases, record – highs seemed to finally show signs of exhaustion this past year. Heading into 2016, shares may face more than just doubts about the level of lift ahead. Global growth, changes in monetary policy, emerging market troubles and China are prominent risks to sentiment moving forward.
Top Trading Opportunities in 2016
Fundamental and technical gears are changing heading into the New Year. The drive found in diverging monetary policy is waning in the aftermath of large market moves. Ahead, ties to general risk appetite and the contrast in variable speeds of growth look to generate heavy volatility and possibly large price swings. See where the DailyFX Analysts believe the top trades will be in 2016.
