FOREX.com Q4 Outlook: The US dollar the ugly sister of the G10; greenback poised to struggle as fiscal issues start to bite.

PR Newswire

LONDON, NEW YORK and SYDNEY, Oct. 2, 2013 /PRNewswire/ -- FOREX.com, the retail division of GAIN Capital Holdings, Inc. (GCAP), a global provider of online trading services; today released its Q4 2013 Market Outlook report.

FOREX.com analysts predict another potentially volatile quarter for financial markets following the Fed's decision to continue its QE programme, with Bernanke leaving his successor to take the plunge on tapering.

"This is likely to be a pivotal quarter for financial markets. With the continuation of stimulus from the Federal Reserve it appears the US is simply delaying the decision to cut the umbilical cord to global markets. Add to it uncertainty over the US debt ceiling and budget negotiations and we could see large amounts of volatile price action and plenty of market opportunities as we move to the end of the year," said Kathleen Brooks, Research Director, FOREX.com.

"Gold looks poised to end the year with a bang, after a strong 3Q. US debt ceiling wrangles and the prospect of an extended period of QE all add to the yellow metal's attractiveness," she added.

Expectations from the FOREX.com Q4 2013 Markets Outlook include:

  • Greenback weakness and the prospect of further QE may keep risk markets alive this quarter even as US politics implode.
  • The yen is one to watch, as Abenomics marks its first birthday. But Abe and co. still have a long way to go to reach their goals, which may trigger more currency weakness.
  • The pound is poised to keep its spot as a top performer in G10 and there could be further outperformance versus the EUR as the BOE finds forward guidance a harder sell than the ECB.
  • The Aussie recovery may not last this quarter as the RBA acts to limit strength and the AUDNZD is weighed down by a potential rate hike in New Zealand.
  • After under-performing for more than 2 years, European stocks look poised to outperform in the developed markets as investors focus on value.
  • Oil gets a reality check from a fiscal-related slowdown in US growth, continued pressure in emerging markets and strengthening production growth in the US, so upside could be limited.

The full FOREX.com Q4 2013 Markets Outlook Report is now available at www.forex.com/uk under Market Analysis.

The FOREX.com Markets Outlook report highlights potential price ranges for key pairs, such as EUR/USD, GBP/USD, USD/JPY, EUR/GBP and USD/RUB.  Major foreign equity markets; key commodities including gold, silver, oil and agriculture are also covered.

The report is prepared by Research Director Kathleen Brooks, Senior Technical Strategists Chris Tevere, CMT, Eric Viloria, CMT, and Research Analyst Chris Tedder.

Foreign Exchange and other leveraged products involve significant risk of loss and are not suitable for all investors. Increasing leverage increases risk. Before deciding to trade foreign exchange and other leveraged products, you should carefully consider your financial objectives, level of experience and risk appetite. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents.

GAIN Capital and its affiliates are regulated by the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA) and the Securities and Exchange Commission (SEC) in the US; the Financial Conduct Authority (FCA) in the UK; the Financial Services Agency (FSA) in Japan; the Securities and Futures Commission (SFC) in HK; the Investment Industry Regulatory Organization of Canada (IIROC); and the Australian Securities and Investments Commission (ASIC) in Australia.

The opinions and information in this report are for general information use and are not intended as an offer or solicitation to any product offered.

About GAIN Capital

GAIN Capital Holdings, Inc. (NYSE: GCAP) is a global provider of online trading services. GAIN's innovative trading technology provides market access and highly automated trade execution services across multiple asset classes to a diverse client base of retail and institutional investors.

GAIN's businesses include FOREX.com, which provides retail traders around the world access to a variety of global OTC financial markets, including forex, precious metals and CFDs on commodities and indices; GTX, a fully independent FX ECN for hedge funds and institutions and OEC, an innovative online futures broker.

GAIN Capital is headquartered in Bedminster, New Jersey, with a global presence across North America, Europe and the Asia Pacific regions.  For further company information, visit www.gaincapital.com

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