ATFX Launches Q2 2020 Report

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 Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term 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.

Download the quarterly market outlook today

About ATFX

Legal: AT Global Markets (UK) Limited is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. FCA registration number (760555). Registered Office: 1st Floor, 32 Cornhill, London EC3V 3SG, United Kingdom. Company No. 09827091

ATFX is a co-brand shared by a number of different entities globally including:

• AT Global Markets (UK) Limited in the United Kingdom regulated by the Financial Conduct Authority (FCA);
• ATFX Global Markets (CY) Limited in Cyprus regulated by the Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term);
• AT Global Markets Limited registered in the Financial Services Authority (FSA) in Saint Vincent and the Grenadines;
• AT Global Markets Intl Ltd in Mauritius is licensed by the Financial Services Commission (FSC)

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