DailyFX.com, the free news and research website of FXCM
Inc (NYSE:FXCM), has released its Top Trading
Opportunities of 2015. DailyFX Analysts looked at the lessons
learned in 2014, where the market stands today and what could come
in the future to suggest trends and trades they will be looking
forward to in 2015.
Monetary Policy Forecasts: ECB, Stimulus and Fed
Hikes
- The Effectiveness of Stimulus
Through the second half of 2014, the EURUSD dropped from 1.4000
to well below 1.2500. While this decline encompasses a number of
elements, according to Chief Currency Strategist John Kicklighter,
much of the momentum was a side effect of the European Central
Bank's efforts. However, much of what we have seen from the Euro's
decline through the end of the year was in anticipation of a
growing ECB balance sheet.
- Divergence to Fuel Deeper Euro Losses
For Currency Strategist, Ilya Spivak, selling the Euro against
the US Dollar was his top trade for 2014. He reasoned the Fed's
move to taper QE3 asset purchases marked a hawkish policy shift
while the ECB looked likely to ramp up stimulus as realized and
expected Eurozone inflation readings tumbled.
- The ECB's Monetary Policy Divergence
According to DailyFX Currency Analyst, Christopher Vecchio, in
years past, promises of pending stimulus had put a halt on the
declines seen by the Euro at times, but the nature of the current
decline in the Euro is different than those previously – context is
important.
Trading the USD: From Yields to Potential
Downsides
- Apparently This Time is Different
Senior Currency Strategist, Kristian Kerr, believes that the
move that the US Dollar started this year has a lot of more room to
run. He also sees the USD/JPY likely to extend gains in 2015,
but the first half of the year could prove choppy as extreme
sentiment and positioning likely to weigh.
- Policy Divergence Bets May Remain Supportive For the US
Dollar Index in 2015
Currency Analyst, David de Ferranti, sees the Fed remaining on
the path towards policy normalization in 2015. Despite subdued
inflation in the US, consistent progress in the labor market may
lead policy makers to begin a slow process of hiking rates. This is
in stark contrast to the ECB and BOJ monetary policies which are
moving in the opposite direction. Furthermore, the RBA and BoE are
also likely to remain reluctant to raise rates. This in turn
supports the prospect of a continued advance for the US Dollar
Index.
The Yen, Cross Pairs and Commodity
Currencies
- Yen Selling Extended a Third Year
According to Quantitative Strategist, David Rodriguez, for the
third-consecutive year, he believes that selling the Japanese Yen
will be on the top trades of the New Year. Even though nothing
moves in a straight line, BOJ might continue a weak Japanese Yen
Policy leading to more quantitative easing.
- Possible Long Term NZDUSD Double Top and a Long Term
EURGBP Support Zone
For Sr. Technical Strategist, Jamie Saettele, the NZDUSD
continues to remain firm relative to other commodity currencies,
notably the Australian Dollar. However, a broad multiyear topping
pattern warns that the Kiwi may be the next to feel the wrath of a
strong US Dollar.
- Troubled Waters Ahead But Steady as She Goes -
GBPJPY
Currency Strategist, Michael Boutros, anticipates further
appreciation in the Sterling against the Japanese yen. Technical
analysis suggests that the pair is vulnerable heading into the
start of the year with the pullback likely to offer favorable
entries. The diverging monetary outlooks for the respective central
banks is likely to keep the pound well supported versus the yen in
2015 as the BOJ continues to aggressively ease in an attempt to
achieve the 2% inflation target.
- Euro Crosses to Target Multi-Year Lows on ECB Easing
Cycle
According to Analyst, David Song, the growing deviation in
monetary policy continues to foster a bearish outlook for EUR/GBP
and EUR/CAD as the ECB struggles to achieve its one and only
mandate for price stability. Nevertheless, the Bank of England
(BoE) remains on track to raise the benchmark interest rate in
2015.
To read the full report visit: Top Trading Opportunities of
2015.
Do you want to avoid potential trading mistakes in 2015? Visit
Top Trading Lessons from 2014.
To read more fundamental and technical analysis on the forex and
commodities markets, and to stay up-to-date with worldwide breaking
financial news, go to DailyFX.
About DailyFX
DailyFX, the free news and research website of the leading forex
and CFD broker FXCM, delivers up-to-date analysis of the
fundamental and technical influences driving the currency and
commodity markets. DailyFX offers in-depth coverage of price
action, predictions of likely market moves, and exhaustive
interpretations of economic and political developments. Additional
features of DailyFX include its extensive economic calendar; a
complete release schedule of news events coming out of the G-10
countries, with filter capabilities to rank each by their
importance and impact on specific currencies. DailyFX serves as a
portal to a vibrant online forum in the forex
trading community. Avoiding market noise and the irrelevant
personal commentary that plague many forex blogs, the DailyFX
Forum has established a reputation as being a place where real
traders go to talk seriously about trading.
About FXCM Inc.
FXCM Inc (NYSE:FXCM) is a global online provider of
foreign exchange (forex) trading and related services to retail and
institutional customers world-wide.
Any opinions, news, research, analysis, prices, or other
information contained on DailyFX.com are provided as
general market commentary, and do not constitute investments
advice. DailyFX will not accept liability for any loss or damage,
including without limitation to, any loss of profit, which may
arise directly or indirectly from use of or reliance on such
information.
Trading foreign exchange and CFDs on margin carries a high level
of risk, and may not be suitable for all. Read full
disclaimer.
Visit www.dailyfx.com and follow us on Twitter @DailyFX_PR,
@DailyFXTeam, DailyFX Facebook, DailyFX TV YouTube Channel and
DailyFX Edu YouTube Channel
CONTACT: Media Relations:
DailyFX
Xiomara Vargas, 646-432-2490
Financial Public Relations Associate
xvargas@fxcm.com
or
FXCM Inc.
Jaclyn Klein, 646-432-2463
Vice-President, Corporate Communications
and Investor Relations
jklein@fxcm.com
Global Brokerage (CE) (USOTC:GLBR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Global Brokerage (CE) (USOTC:GLBR)
Historical Stock Chart
From Jul 2023 to Jul 2024