3Q Outlook: Continued volatility expected on the back of Fed-fueled market moves

Jun 18, 2013, 08:30 ET from

LONDON, NEW YORK and SYDNEY, June 18, 2013 /PRNewswire/ --, the retail division of GAIN Capital Holdings, Inc. (NYSE: GCAP), a global provider of online trading services; today released its 3Q 2013 Market Outlook report. analysts predict another volatile quarter for financial markets as the Fed considers tapering its QE program and the German Federal elections in September threaten to break the spell of sovereign stability in the Eurozone.

"This is likely to be a pivotal quarter for financial markets. The prospect of an end to stimulus from the Federal Reserve may carry huge ramifications for the direction of prices in equity, FX and commodity markets," said Kathleen Brooks, Research Director,

"At the same time, German Federal elections and a new Governor at the Bank of England may rock markets further.  The easy gains in stock markets of recent times could be over," she added.

Expectations from the 3Q 2013 Markets Outlook include:

  • The dollar is likely to resume its upward bias as Fed tapering and relative growth potential in the US comes back into view.
  • Trust in Abenomics starts to wane, threatening the USDJPY uptrend.
  • A fragile peace in European sovereign bond markets combined with an uncertain outlook for growth could cap EUR gains.
  • If Mark Carney, the new governor of the Bank of England, does not deliver the QE goods then we could see further GBP upside.
  • Commodities may be kept under pressure by global growth fears, leaving the Aussie and Kiwi vulnerable to further losses.
  • Precious metals could see their popularity improve as we progress through the quarter, while Copper may remain under pressure as global growing pains persist.
  • Choppy waters for global stock markets could see further downside in the next three months as the end of QE3 brings corporate fundamentals back into focus.  

The full 3Q 2013 Markets Outlook Report is now available at under Market Analysis.

The Markets Outlook report highlights potential price ranges for key pairs, such as EUR/USD, GBP/USD, USD/JPY, EUR/GBP and USD/RUB.  Major foreign equity markets; key commodities including gold, silver, oil and agriculture are also covered.

The report is prepared by Research Director Kathleen Brooks, Senior Technical Strategists Chris Tevere, CMT, Eric Viloria, CMT, and Research Analyst Chris Tedder.

Foreign Exchange and other leveraged products involve significant risk of loss and are not suitable for all investors. Increasing leverage increases risk. Before deciding to trade foreign exchange and other leveraged products, you should carefully consider your financial objectives, level of experience and risk appetite. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents.

GAIN Capital and its affiliates are regulated by the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA) and the Securities and Exchange Commission (SEC) in the US; the Financial Conduct Authority (FCA) in the UK; the Financial Services Agency (FSA) in Japan; the Securities and Futures Commission (SFC) in HK; the Investment Industry Regulatory Organization of Canada (IIROC); and the Australian Securities and Investments Commission (ASIC) in Australia.

The opinions and information in this report are for general information use and are not intended as an offer or solicitation to any product offered.

About GAIN Capital

GAIN Capital Holdings, Inc. (NYSE: GCAP) is a global provider of online trading services. GAIN's innovative trading technology provides market access and highly automated trade execution services across multiple asset classes, including foreign exchange (forex or FX), contracts for difference (CFDs) and exchange-based products, to a diverse client base of retail and institutional investors.

Through our retail brand,, we provide retail traders around the world with access to a variety of global OTC financial markets, including forex, precious metals and CFDs on commodities and indices.  A market leader for over a decade, supports clients from over 140 countries and our products and services are available in multiple languages, including English, German, Chinese, Japanese, Russian and Arabic. 

GAIN Capital also operates GTX, a fully independent FX ECN for hedge funds and institutions; Open eCry, an innovative online futures broker; and GAIN Securities, Inc. (member FINRA/SIPC) a licensed U.S. broker-dealer.

GAIN Capital and its affiliates have offices in New York City; Bedminster, New Jersey; London; Sydney; Hong Kong; Tokyo; Singapore; Beijing and Seoul.

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