How lengthy will the U.S. greenback’s downward correction final? Get all of the solutions in our first-quarter forecast!

US Treasury yields plummeted within the final three months of 2023 on expectations that the Federal Reserve would considerably scale back borrowing prices over the medium time period, sending the U.S. greenback reeling to its lowest stage in 5 months. Towards this backdrop, EUR/USD and GBP/USD soared, hitting multi-month highs in late December.

The pullback in U.S. bond yields triggered an enormous rally within the fairness area, enabling the primary inventory market indexes to climb to new data. Gold costs additionally superior, ending 2023 above the psychological $2,000 stage however barely off its all-time excessive– a bullish growth for the dear metallic which is more likely to profit from the Fed’s pivot.

With U.S. yields skewed to the draw back and risk-on sentiment in full swing on Wall Avenue, the U.S. greenback could lengthen losses over the approaching months. This potential state of affairs may reinforce upward momentum for gold, EUR/USD, GBP/USD and shares in Q1, however warning is warranted, with sure markets approaching overbought situations.

Totally different market dynamics are poised to unfold within the close to time period, probably bringing about elevated volatility and attractive buying and selling setups for main property. For an in-depth evaluation of the variables and drivers which will affect currencies, commodities (gold, silver, oil) and cryptocurrencies in early 2024, discover the Q1 technical and basic forecasts put collectively by DailyFX’s workforce of specialists.

For an in depth evaluation of gold and silver’s prospects, which contains insights from basic and technical viewpoints, obtain our Q1 buying and selling forecast now!

Q1 TRADING FORECASTS

British Pound Q1 Forecast: Can the BoE Mood UK Charge Minimize Expectations?

This text delves into the elemental outlook of the British pound, providing an exhaustive evaluation of its medium-term prospects. The piece additionally discusses essential danger components that would steer sterling’s pattern within the first quarter of 2024.

Australian Greenback Technical Forecast: AUD/USD Enters Q1 at Key Resistance

This text presents an in-depth evaluation of the Australian greenback’s outlook for the primary quarter, offering useful insights into value motion dynamics and market sentiment.

Bitcoin Q1 Basic Outlook – Optimistic Tailwinds on the Horizon

Bitcoin goes into the primary quarter of 2024 with two particular occasions set to find out value motion in Q1 – a spot Bitcoin Change Traded Fund (ETF) and the run-up into the most recent Bitcoin ‘halving’ occasion.

Euro Q1 Technical Forecast: A Blended Image

EUR/USD closed out 2023 on a optimistic observe, recovering a sizeable chunk of the decline witnessed within the second half of the yr. The medium-term pattern seems bullish however yield differentials will wrestle to inspire a protracted interval of upside potential.

Crude Oil Q1 Basic Forecast: US Charge Minimize Hopes Provide Assist Amid Demand Worries

Oil costs hit their highest stage of 2023 in September however have declined very sharply since, with shaky financial information maintaining markets fretting concerning the demand outlook.

USD/JPY Q1 Technical Forecast: Will the US Greenback Downtrend Endure?

USD/JPY Q1 Technical Forecast: Will the US Greenback Downtrend Endure? The previous quarter noticed USD/JPY energy as much as highs not beforehand seen since mid-1990, thanks largely to these basic, interest-rate differentials.

Gold, Silver Q1 Forecast: Basic Drivers Align however Actual Charges Pose a Menace

The article focuses on the elemental outlook for treasured metals within the first quarter, focusing particularly on gold and silver costs, making an allowance for rate of interest dynamics, in addition to the U.S. greenback’s broader pattern.

US Equities Q1 Technical Outlook: Shares in Overbought Territory. Can It Continue?

The technical image is a little bit onerous to learn for the S&P 500 heading into the primary quarter of 2024, with quick resistance resting close to the document excessive across the 4,817 stage.

US Greenback Q1 Basic Outlook: A Story of Two Halves – Weak Begin, Sturdy End

The Fed’s sudden dovish pivot is a transparent sign that officers wish to shift coverage in time to engineer a mushy touchdown; in different phrases, they’re prioritizing development over inflation.

For an entire overview of the euro’s technical and basic outlook within the coming months, make sure that to seize your complimentary Q1 buying and selling forecast now!

Q1 TOP TRADE OPPORTUNITIES

Q1 High Commerce: Bullish Russell 2000 as Delicate-Touchdown Situation Will get Traction

This text analyzes the technical and basic outlook for the Russell 2000 for the primary quarter of 2024, analyzing the primary variables that would decide its medium-term prospects.

Bullish Gold: High Commerce Q1 2024

There are a number of components influencing gold’s value that seem like pulling in the identical course forward of Q1 of 2024. These assist to kind the buying and selling thesis and are outlined in the remainder of this text together with technical concerns.

Quick USD/JPY – Rising Charge Minimize Expectations and FX Intervention by the BoJ

USD/JPY held the excessive floor for the primary half of This fall 2023 earlier than lastly declining from close to the 2022 highs. The selloff gained traction following rising chatter towards the top of November concerning a coverage shift from the BoJ.

Coinbase (COIN) – Rising Tailwinds as Cryptocurrency Curiosity Swells?

Coinbase, the most important cryptocurrency trade within the US, has seen its shares carry out strongly within the second half of this yr, rallying from round $46 in early June to a present stage of $150.

Quick GBP/USD – Going Towards the Grain: High Commerce Q1, 2024

The British pound enters 2024 on a comparatively sturdy footing towards the USD after markets reacted ‘dovishly’ to the Federal Reserve’s extra accommodative messaging within the final FOMC announcement.

Searching for actionable buying and selling concepts? Obtain our prime buying and selling alternatives information full of insightful methods for the primary quarter!