- The U.S. dollar is most likely to stay on the soft-side against other major currencies, but there are also expectations of periodic bouts of dollar strength on safe haven buying.
- The euro is not out of the woods yet as Europe continues to live dangerously in the second phase of the sovereign debt crisis.
- The U.K. economy may continue to disappoint in the 3Q with signs pointing to further weakness as elevated commodity prices hit consumer confidence.
- Japan continues its long and winding road to recovery after the devastating earthquake took its toll on 1Q GDP, but recent rebounds in industrial production suggest a corner has been turned.
- Reconstruction efforts in Australia and New Zealand may support an earlier than expected recovery for the Oceanic nations, but a hard landing in China would short-circuit the expected rebound in Australia and New Zealand.
- The recent outperformance of gold relative to silver suggests a potentially significant turning point for risk appetite as the prospects for global growth are not quite as rosy as earlier thought. This suggests the potential for more significant downside in global equities and other risk assets.
- In the oil markets, lingering effects from recent output increases alongside a still firm underlying structure may be the catalysts for a modest return of crude oil strength in the 3Q.
Bumpy Roads Ahead For Investors As Uncertainty Remains High In 3Q 2011 According To FOREX.com Markets Outlook
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