In contrast to the charge the Dollar mounted through the final three-month period of 2016, the benchmark currency seemed to stall through the first quarter of 2017. While not a full tide change, the bulls are much more circumspect about their ambitions.
The Euro entered 2017 on weak footing, particularly against the US Dollar with a range of threats keeping Europe directly in its sights. Yet as the calendar turns into Q2'17, it seems that many of these risks were overblown. Now, with political risks dissipating, EUR/USD may have a clear path for a run higher through the end of the quarter.
A fundamental Yen forecast for the next three months looks like a straightforward business. Direction is all-too-likely to be dictated not by Japanese economic events but by those in the US.
The outlook for the British Pound appears to be a textbook case for appreciation on purely economic grounds. Measures of inflation have been marching higher, the jobless rate has plunged to the lowest since late 2005 and GDP marked the fastest pace of expansion in a year.
Gold prices have staged a meaningful recovery during the first three-months of 2017 and the bullish sentiment surrounding the precious metal may gather pace over the coming months as Federal Reserve officials anchor interest-rate expectations.
A fragile oil market recovery looks like it may be tested in Q2 2017. A quick overview of Q1 shows OPEC and certain non-OPEC countries like Russia held to their Q4 2016 agreement to a pullback in production.
The S&P 500 is now 3.5 times more valuable than it was seven years-ago. Rebound from the Great Financial Collapse offered strong footing for a recovery, but the recovery hasn't lacked doubters for virtually the entirety of its run.
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?