Monetary accommodation will likely drag EUR down significantly, while USD is set to be the
key beneficiary of safe-haven seeking. US Equities markets, in consequence, will outperform European markets, this in a declining market.
From H2, slowing emerging markets will limit gains for risk currencies such AUD, BRL.
As a trend, SGD, MYE & USD will be the best performing currencies, at least for the next 12 months.
USD bullish move in progress,
From 80.00 now, the USD index will rise 15% this year and reach between 95.00 and 100.00
In Euro zone, it looks like, even if the market hopes an improvement in the beginning of the year, the EURUSD will not exceed 1.3500 for long and drop to 1.1400 soon before parity Q3.
Cable and USDCHF will follow reaching respectively 1.3000 for cable and 1.2000 for USDCHF.
Before any slowing there, Australian dollar will be the strongest currency and reach 1.1200 versus EUR.
Gold looks bottomish and 1500 and should reach 2500 one of those days, at least to satisfy my bullish friends. However i will not play it as i am very bullish USD, and the correlation makes me uncomfortable.
good trading
