The second quarter ended with both a remarkable restraint in volatility and exceptional progress for key markets like equities (a 7 quarter climb for the S&P 500) and the Dollar (the worst quarter in 7 years). Will the dam holding back risk aversion finally break? Will the monetary policy tides shift? Can oil and gold prices finally return to trend? See what the DailyFX Analysts expect for the coming three month period by signing up for the forecasts on the DailyFX Trading Guides page.
US Dollar Exchange Rate Forecast – What Could Save the Dollar?
The US Dollar has fallen from grace and finished as one of the worst-performing global currencies through mid-year. And yet it has several factors which should be working in its favor: strong financial markets, rising interest rates from the US Federal Reserve, and the prospect of major deregulation in domestic markets. Why might this once again fail to boost the Greenback in the second half of 2017?
Euro Exchange Rate Forecast – Can this Rally Continue?
Traders pushed the Euro sharply higher through mid-year on broad economic improvement in the Euro Zone and favorable political developments. Yet economic growth may be slowing, and it is not clear politics will continue to boost the Euro. Our technical forecast calls for a major break higher, but we will need to see these key factors improve before calling for continued Euro strength.
Japanese Yen Forecast – Key Factors to Watch
Your eyes do not deceive you; the Japanese Yen finished the second quarter exactly where it started. Our fundamental trading forecast for the JPY points to further sideways trade, but the potential for a major technical breakdown will keep things interesting for the USD/JPY in the second half of 2017.
British Pound Forecast – Why is it Stronger Despite Brexit?
The British Pound proved naysayers wrong as it finished higher through the first half of the year. But can it continue higher despite clear political uncertainty and ongoing Brexit negotiations? It will be critical to watch these key themes going forward—particularly as our technical forecast points to GBP weakness.
Gold Price Forecast – All Eyes on the US Federal Reserve
Gold prices rose sharply through early 2017, but a rate hike from the US Federal Reserve forced a notable pullback through mid-year. Can the specter of higher interest rates continue to push Gold Prices lower in the second half? These are the key signs to keep an eye on.
Crude Oil Price Forecast – Will Excess Supply Continue to Sink Crude?
Crude Oil prices limped into the second half of the year amid a clear oversupply across global financial markets. And indeed, we believe these key signals point to continued weakness through the rest of 2017. What could change?
S&P 500, DAX, FTSE 100, and Broader Equity Market Forecast
Global equities have enjoyed impressively one-sided gains for the better part of eight months, but will a toxic cocktail of economic and political developments derail the gravy train? See our full forecast for the S&P 500, DAX, FTSE, and other key markets in our second-half forecast.
