ATFX Launches Q2 2020 Report

ATFX providea regular updates to traders on how the predictions made in the newly released report for the second quarter of 2020 are unfolding in the markets during these challenging times.

ATFX has released its quarterly global market outlook for Q2 2020. The broker’s in-house experts share their views regarding factors that could influence the markets in the coming quarter. The analysts featured in the report gave their predictions on major currency pairs, commodities, equities and cryptocurrency for Q2.

Alejandro Zambrano, ATFX’s Global Chief Market Strategist, covers the major currency pairs including EUR/USD, USD/JPY, AUD/USD, and GBP/USD. He explains what he thinks will happen to each of the currency pairs, looking at the most likely scenarios.

Alejandro explains two scenarios, one –  “If the borders close, the Eurozone could slump into a recession.” And two – “However, the euro could rally if the coronavirus pandemic is contained early in the quarter.”

As for the USD/JPY outlook, he notes that “The economic situation in Japan tends to have a low impact on the currency until the Bank of Japan decides to embark on large QE and rate cut programs … the currency tends therefore to follow the mood of global risk appetite.”

Cameron Bowen, a senior content manager at ATFX UK discusses the outlook of global equities based on existing factors and the most likely outcomes.

A major factor that is likely to influence the performance of global stock indices is the coronavirus pandemic that has led to the worst ever quarterly performance for stocks in Q1. How governments handle the pandemic going forward will determine how stocks perform in Q2.

Cameron also observes that “The short term future of this market will ultimately come down to how the spread of the coronavirus is handled … I expect to see continued volatility in the coming weeks but I think we will see it soften.”

He also covers cryptocurrencies and how their recent performance negates the concept of cryptos being a safe haven or an uncorrelated asset class.

Martin Lam, ATFX’s Chief Analyst for the Asia Pacific region covers commodities including gold and oil and their likely performance in Q2. He states that gold is likely to rally during the quarter if the COVID-19 pandemic continues to ravage countries and the death toll keeps rising.

Another sell-off in the equity markets could trigger a major rally in gold past its recent high of $1,702 that it reached in March. However, action in the gold markets could be subdued if the equity markets rally and the global economy recovers. Further central bank easing could also trigger a rally by gold.

Mr Lam also covers the crude oil market where he expects oil prices to rise on higher demand and potential supply cuts in Q2. Oil prices are usually strong in Q2 and this seasonal strength could also boost the commodity. The crude oil outlook will also be affected by the coronavirus pandemic.

ATFX continues to provide regular updates to traders on how the predictions made in the Q2 report are unfolding in the markets during these challenging times.

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”