Market Trends to Watch for in 2018

Capital Market trends investors will be looking at for 2018:

Crypto-currencies: Bitcoin – the rise of regulators

U.S corporate tax cuts: What’s the ‘real’ potential?

Interest rate differentials: Central banks tapering – since 2008, G10 central banks have been employing expansionary monetary policies to stimulate their economies. With growth around the globe now looking healthier, the trend has started to reverse. How far can G10 yields back up? Will the BoJ be the exception?

Brexit negotiations: Will Theresa May remain Prime Minister in 2018? Hard Brexit vs. soft Brexit depends on the flexibility from both sides (U.K and E.U).

Growth prospects in Emerging Market: India and China performed especially well in 2017. Can the trend continue?

New Fed head in February: Is the market “underpricing Federal Reserve hikes and U.S. tax reform impact?

Fallout of MiFiD

Russian inquiry: Will impeachments proceedings begin against President Trump?

Global re-ordering: The potential for a U.S/China trade war

U.S Midterm’s: Will the U.S democrats take back a majority in the November midterm elections in the U.S House of Representatives?

OPEC: Will crude prices finish 2018 above $70? How much of a threat to oil prices is U.S shale production?

2018 Geo-political Calendar Events:

U.S President Donald Trump delivers his first State of the Union address

Winter Olympics in South Korea
Raúl Castro set to step down as Cuba’s president
U.S Federal Reserve chair Janet Yellen to step down

UK hopes to agree to a Brexit transition deal
Vladimir Putin expected to win Russia’s presidential elections.
Italian general election, with the Eurosceptic Five Star Movement leading the polls
Venezuela voting could be held, with Nicolás Maduro having a good chance of re-election

Iraq elections

World Cup held in Russia
G7 summit in La Malbaie, Canada


Mexico general elections

Sweden general elections

Brexit deal signature expected (tentative)
Brazil general elections

U.S midterm elections

G20 summit in Buenos Aires

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell