Forex Forecasts and Trading Signals

Citi forecasts that gold price could reach $2000 per ounce in the next 12 -24 month. A slowdown of the global economy, recession fears and spreading coronavirus could boost gold demand as a safe-haven asset.  

Analysts in Societe General are bullish on Euro/Dollar and forecasting that pair could hit 1.11 by the end of June, 1.13 in the third quarter and 1.14 by the end of 2020.

Morgan Stanley cut its oil forecasts for the second quarter for WTI from $52.5 to $30 and for Brent from $57.5 to $35.

Bank of America cut its year-end target for the S&P 500 Index to 2600 from 3100 amid the coronavirus pandemic and starting recession. 

Analytics for Commerzbank forecast that EUR/USD rate will be traded at 1.1 in the 2d quarter and 1.12 in the 3d quarter. By the end of the year, the price will reach 1.14 and 1.16 in the Q1 of 2021. Bank does not expect changes in central bank rates: Fed rate will stay at 0.0 - 0.25% ad ECB at -0.5%.

In Nordea forecasts that EUR/USD will be traded at 1.11 in 3-month term and 1.17 by the end of the 2020 year. The rescue QE program that was launched by the Fed to support the economy from coronavirus effect will have a negative effect for USD. From the other hand, in further collapsing of the global economy, the bank expects increasing inflows in the US dollar as a safe-haven currency and EUR/USD could go to parity. 

Analysts from BMO rise gold forecast for 2d quarter to $1660 and to $1700 by the end of 2020. 

Barclays slashed its oil forecasts for this year. New price outlook for WTI is 28 USD per barrel and for Brent is 31 USD. 

Credit Suisse revised its forecast for S&P 500 in 2020 from 3300 to 2700. Also in bank sees that bull market will continue in 2021 with a target of 3100. 

UBS lowered its Brent and WTI crude price outlook for 2d quarter to $20 per barrel from $30 and $28 respectively.

Citigroup revised its oil forecast for the 2d quarter because of the drop of global demand and battle between Russia and Saudi. According to the base scenario, the average price for Brent - 17USD and in the worst case the price could slide to 5 USD per barrel. 

Bank of America revised its average gold price forecast for the 2020 year from 1625 to 1619 USD per ounce. 

Goldman Sachs predicts that global oil demand can drop to 1.1 million bpd in 2020 because of slowing economic growth as a result of the coronavirus epidemic.  The bank forecasts that WTI and Brend will trade averaging 20 USD per barrel in the second quarter. 

Barclays lowered its 2020 oil forecasts: for Brent to 43 USD per barrel and WTI to 40 USD. The price war between Saudi Arabia and Russia and spreading around the globe coronavirus will affect oil demand. 

Bank of America lowered its Brent crude price forecast to $45 a barrel in 2020 from $54 a barrel.