FOREX.com Analysts Expect Rocky Road for Currency Traders Heading into Third Quarter 2010
Major Stumbling Blocks Are Weak U.S. Economy and Eurozone's Fiscal Cutbacks
The U.S. economy will remain weak as unemployment weighs heavily on the economic recovery, according to data presented by FOREX.com, a division of GAIN Capital, during its 3Q 2010 Markets Outlook webcast.
The FOREX.com analysts also predict that euro weakness will persist throughout the third quarter and into 2011, with the Eurozone's fiscal cutbacks undermining European growth and potentially derailing the global recovery.
"With U.S. fiscal stimulus set to phase out in the second half of 2010, a U.S. slowdown will decelerate the economic rebound and generate another dip in risk sentiment, supporting the dollar as a safe-haven currency and keeping pressure on the euro, the pound and the yen," said Brian Dolan, FOREX.com's Chief Currency Strategist.
Currencies that are likely to outperform include the Australian dollar (AUD) and Canadian dollar (CAD), but they're also at risk if the global recovery falters more seriously.
Other highlights from the FOREX.com 3Q 2010 Markets Outlook include:
- Central bank interest rates in the U.S., U.K., Eurozone and Japan will remain on hold into 2011 given uncertainty from the European debt crisis and the absence of inflationary pressures
- Additional fiscal stimulus in China may be a salvation to the global recovery
- Oil is expected to weaken on excess supply and stalling demand
- The JPY may weaken as the new government seeks to limit its strength and presses the BOJ to undertake another round of quantitative easing to fight deflation
The FOREX.com Markets Outlook provides commentary and market forecasts with its view of the direction of the world's major currencies as well as key commodities including gold, silver and oil.
The full FOREX.com 3Q 2010 Markets Outlook Report will be made available on the company's websites later this week at www.gaincapital.com or www.forex.com.
About GAIN Capital
GAIN Capital Holdings, Inc. is a global provider of online trading services, specializing in foreign exchange (forex or FX) and contracts for difference (CFDs). Customers and trading partners in more than 140 countries have utilized the company's award-winning trading platform which transacts nearly $250 billion per month.*
A pioneer in online forex trading, GAIN Capital provides execution, clearing, custody and technology products and services to an institutional client base including asset managers, broker/dealers and other financial services firms. GAIN also operates FOREX.com, one of the largest and best-known brands in the retail forex industry.
With offices in New York City; Bedminster, New Jersey; London; Sydney; Hong Kong; Tokyo and Seoul, GAIN Capital and its affiliates are regulated by the Commodity Futures Trading Commission (CFTC) in the United States, the Financial Services Authority (FSA) in the United Kingdom, the Financial Services Authority (FSA) in Japan, the Securities and Futures Commission (SFC) in Hong Kong, and the Australian Securities and Investments Commission (ASIC) in Australia.
GAIN's investor group includes private equity firms 3i, VantagePoint Venture Partners, Tudor Ventures, Edison Venture Fund and Cross Atlantic Capital Partners.
For company information, visit www.gaincapital.com or www.forex.com
*Includes customer trades, rollovers, and counterparty transactions.
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From the Press Room
- March 1, 2011 FOREX.com Launches New Currency Trading TV Campaign for U.S. and International Consumers
- February 28, 2011 Jeffrey Scott Joins GAIN Capital as Chief Commercial Officer
- February 24, 2011 GAIN Capital's FOREX.com Releases Its January 2011 Trade Execution Scorecard; Adds New Execution Rate Metric
- February 18, 2011 GAIN Capital announced that CEO Glenn Stevens and CFO Henry Lyons are scheduled to participate in the UBS NY Market Structure and Financial Tech Day
- February 15, 2011 GAIN Capital Announces Fourth Quarter and Full Year 2010 Results
- February 14, 2011 GAIN Capital's FOREX.com to Sponsor New CNBC Program: "Money in Motion Currency Trading"
