As people we tend to always hope for the best. And even in the worst of years we always hope for improvement in the next one. But, as trader we need to look reality in the eyes and really analyze the situation.
So, will we see improvement in 2019? Fortunately for us there are only 2 case scenarios.
1. Yes.
In case there is a better situation in the markets in 2019 we are going to see a lot of change. Greenback is going to stabilize, although, most likely at the expense of other currencies. Which is bad news for the pound, as it is facing quite a story this year – Brexit. The process has already done damage to British economy and we are looking forward with horror to see which consequence it is going to have for the economy not only in the region but also world-wide.
Euro is also about to take a hit because of the process. But seeing how the EU is looking for the new partners in business it is likely that the currency is going to find strength some other place.
Stable greenback is going to mean stable gold prices, and gold can ensure more or less stable position of other precious metals. Although we haven’t seen that much movements from the metals, it is still going to be nice to see more of the stability in the segment of the market.
Oil can find stability as well. All that is needed is for the OPEC and OPEC+ countries to make deals with each other, the blame or the recent drop in per-barrel price lies on Russia and Saudi Arabia alike, so we are hoping that these turbulent countries are going to find their peace with the main branch of their international output.
It all sounds pretty good, doesn’t it? Well, there is an only disadvantage – it is not likely to happen.
2. No.
The more likely and quite unfortunate scenario for all of us. The economy is not likely to grow and stabilize in the nearest future. It is possible that we are going to see some of the recovery waves, but it is still unclear, whether they are going to be significant.
So far virtually no experts talk about a favorable year. It seems that the bull market has lived itself out and we are going to see more of the falls and disappointments.
Brexit IS likely to hit not only pound, even though Theresa May is trying to keep British head over water, but also euro. After all, these ties are not easily severed. Although a crash like that is good news for the safe havens – more traders and investors are going to seek shelter with them. JPY and CHF traders be on the lookout for that.
Oil finding stability? Not with current Russian international policies, and let me tell you – those are not going to get better any time soon. We have learnt this lesson this far. That means more turbulence for the asset in the nearest future.
The only thing that is certain for now is that we are going to have to wait in order to really see what is going to happen in the nearest future.