Market Volatility Set to Define 2025, Says ATFX in Latest Analysis in Q1 2025 Trader Magazine

Global forex and CFD broker ATFX has released its quarterly market outlook, Trader Magazine, with its analysts forecasting significant market volatility driven by anticipated changes in US leadership, monetary policy shifts, and ongoing geopolitical tensions.

Martin Lam, Chief Analyst for Asia Pacific at ATFX, emphasises portfolio diversification as a key strategy, while Mohammad Shanti, Head of Market Research & Analysis, points to potential inflationary pressures and trade disruptions despite continued dollar strength.

The outlook for Europe appears particularly challenging, according to Dr Mohamed Nabawy, MENA Market Analyst at ATFX. He suggests the European Central Bank may implement rate cuts against a backdrop of weak growth, with additional uncertainty stemming from political instability in key economies including Germany and France.

In the Asia-Pacific region, Nick Twidale, Chief Market Analyst for Australia, highlights ongoing inflationary concerns despite stable interest rates. He notes significant weakness in the Australian dollar, attributing this to both US dollar strength and economic challenges in China.

Examining the UK market, Global Chief Market Strategist Gonzalo Canete projects potential strength in sterling, suggesting GBP/USD could reach 1.40 this year. However, this forecast remains contingent on domestic economic data and US trade policy developments.

The Japanese economy faces its own hurdles, with analysts predicting possible contraction even as rates rise. Jessica Lin, Global Market Analyst for Asia Pacific, suggests this environment could benefit gold prices, supported by central bank purchasing activity and geopolitical risks.

Oil markets may face oversupply challenges, according to Gab Santos, Market Strategist for the Philippines, who stresses the importance of robust risk management strategies.

In the cryptocurrency sector, Senior Market Analyst Gabi Dahduh points to ongoing volatility, citing regulatory developments and broader economic factors as key influences. The analysis notes significant technological developments, including Ethereum's transition to Proof of Stake.

Jason Tee, Global Market Strategist for Asia Pacific, emphasises the importance of adaptability and continuous learning in trading strategy development.

The full analysis is available in ATFX's Q1 2025 Trader Magazine which can be downloaded here.