This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Traders Bracing For Worst In 4Q 2011 According To FOREX.com Markets Outlook

NEW YORK and LONDON, Oct. 10, 2011 /PRNewswire/ -- According to a fourth quarter outlook presented by FOREX.com analysts, expectations are that further deterioration in the major economies' growth prospects, with increasing spill-over into emerging economies, will potentially raise the risk of a global recession.  

FOREX.com, the retail division of GAIN Capital (NYSE: GCAP), a global provider of online trading services, is predicting a grim outlook for the fourth quarter as governments in most major economies continue to pursue severe measures even as consumer sentiment gauges point to further cutbacks in private consumption.

"While we are always cautious about expressing too extreme a degree of pessimism, we don't see a lot on the fundamental horizon to encourage much optimism," said Brian Dolan, chief currency strategist, FOREX.com.  "The key fundamental drivers — entrenched high unemployment, consumer/business deleveraging, fiscal austerity, and weak housing markets — are all long-term sources of weakness and we don't expect to see any material improvements in those areas any time soon."  The FOREX.com team expects the USD to strengthen in a flight to safety as investors dump EUR, GBP and other major currencies on risk aversion as the global outlook deteriorates.

Other expectations from the FOREX.com 4Q 2011 Markets Outlook include:

  • Europe's core economies slowing further even as EU policymakers struggle to reach agreement to increase the firepower of the European Financial Stability Facility (EFSF) and stem the debt crisis.
  • In the U.S., political drama over the jobs bill playing out in late October with a likely watered-down package of mainly tax cuts agreed by early November.
  • Continuing weakness in key commodity-linked currencies such as AUD, CAD and NZD, along with various emerging market currencies including ZAR. MEX, HUF, and SGD, during bouts of extreme risk aversion.
  • The Bank of England keeping interest rates on hold this quarter but likely to announce more QE.
  • Weaker global growth outlooks suggesting commodity demand softening more, likely seeing further downside in crude oil prices
  • Precious metals experiencing further weakening, as demand for silver falls on weaker industrial outlooks and risk aversion sends gold investors fleeing into cash (USD).

The FOREX.com research team also highlights potential price ranges for key pairs, such as EUR/USD, GBP/USD, USD/JPY, USD/CHF, and AUD/USD.  Key cross-currency pairs like EUR/JPY and EUR/GBP are also covered.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,192.52 -21.90 -0.12%
S&P 500 2,111.37 +0.63 0.03%
NASDAQ 4,985.05 -2.84 -0.06%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs