After nearly two years of consolidation, the Dollar (ICE Index) was finally driven to a critical bullish breakout in the final months of 2016.
The factors that led to EUR/USD breaking through its March 2015 cycle low in Q4’16 will likely maintain their influence into Q1’17
The Japanese Yen heads into 2017 falling fast against the US Dollar, and fundamental developments suggest the JPY may continue its decline versus the resurgent Greenback.
Much of what happens to the British Pound in 2017 will depend on implementation of the outcome of the Brexit referendum. Markets will have ample fodder for speculation, from the formal initiation of the process pulling the UK out of the European Union and the subsequent negotiation to the indirect influence of uncertainty on the economy.
Rising U.S. interest rate expectations may continue to drag on gold prices as the Federal Reserve appears to be on course to further normalize monetary policy in 2017.
For traders who like to simplify the markets to a game of supply vs. demand, the Oil market in Q1 2017 should be their World Cup. Heading into the New Year, the OPEC and non-OPEC members will cut supply to the agreed upon amounts.
As we move into 2017, equities have been driven-higher with the euphoric hope of the congruent alignment of both fiscal and monetary policies from the United States.
Top Trading Opportunities in 2017
A buildup of major event risk in 2016 from Brexit to the US Presidential election to the second Fed rate hike put markets back in motion. Will revived trends hold true into 2017 or is volatility the only holdover to depend on?