# Brexit, bull markets and the global stage – 2017 predictions from easyMarkets  Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-11-01 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: UK economy may face setbacks as pound weakens - easyMarkets Meta Description: Discover what 2017 has in store for the UK economy, from a struggling pound to the implications of Brexit negotiations. Find out how gold investments could be a URL: https://financedigest.com/brexit-bull-markets-and-the-global-stage-2017-predictions-from-easymarketshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/image-1736844398730-compressed.jpg) - **UK economy likely to suffer setbacks as pound weakens further** - **Toxic Brexit negotiations could weigh on global equity prices, creating panic** - **Gold could come to investors’ rescue as international uncertainty continues** As the nights draw in and central heating boilers fire up across the country, it’s [time to start looking seriously at what the winter – and the New Year](https://www.financedigest.com/german-tax-revenues-fall-in-august-for-first-time-this-year.html "German tax revenues fall in August for first time this year") – might hold in store. For investors, seeing into the future can be tricky, particularly in light of so many shifting influential [factors when it comes to global markets](https://www.financedigest.com/insights-on-the-flexible-packaging-global-market-to-2027-key-driving-factors-and-challenges.html "Insights on the Flexible Packaging Global Market to 2027 – Key Driving Factors and Challenges"). Thankfully the team at pioneering forex and CFD broker [**easyMarkets**](http://r20.rs6.net/tn.jsp?f=001hQW2zyQ5R0FZHgfsx70E6JcglhmPWVdBlhECXKVy3boj73GUk_je5eG34GNg9rH7eZ1g_yTZ2suCswn8a4h9iq3CccDqGKznpAKWkqvDvDBMhEHlojicIBjiXq-SmHhjttkmMoqQUx9yfV7Vth6OaUY5Qw8ls9oc9AkP0eeMbChmMzJzdOavpQ==&c=5qtfpE1t0vHm-yW3FGi-pxukCCy-Z05RM6bt_cYT1EQZGu8oWr8UCQ==&ch=8yzB4oSBjPSzg8I0zRlzbK7cU7K6HSfyBucqb3DRhtWJBC43vPfhTg==) has been polishing its crystal ball, resulting in a number of predictions as we head towards 2017. **![Brexit, bull markets and the global stage - 2017 predictions from easyMarkets](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/image-1736844398730-compressed.jpg)** **The easyMarkets 2017 predictions:** 1. **The UK economy is** [facing a hard year](https://www.financedigest.com/analysis-euros-20-year-low-leaves-ecb-facing-costly-choices.html "Analysis-Euro’s 20-year low leaves ECB facing costly choices") According to [Risk Management](https://www.financedigest.com/treasury-and-risk-management-application-market-to-bring-in-revenue-of-us-7-1-bn-by-2028-comprehensive-research-report-by-fmi.html "Treasury and Risk Management Application Market to bring in revenue of US$ 7.1 Bn by 2028 – Comprehensive Research Report by FMI") Associate **EvdokiaPitsillidou**, the UK looks set to suffer a series of setbacks as the New Year unfolds. She comments, UK economic growth is forecast to slow considerably [next year](https://www.financedigest.com/uaes-adnoc-to-open-swiss-trading-office-next-year.html "UAE’s ADNOC to open Swiss trading office next year"), which may force the Bank of England to ease monetary policy, placing further pressure on the British pound. The GBP/USD touched 31-year lows in 2016, and may be poised to continue lower in 2017 as the US dollar responds to higher [interest rates](https://www.financedigest.com/czech-interest-rates-already-at-high-level-central-bank-governor-says.html "Czech interest rates already at high level, central bank governor says"). As well as the pound suffering, [Prime Minister](https://www.financedigest.com/factbox-who-will-replace-uk-prime-minister-boris-johnson.html "Factbox-Who will replace UK Prime Minister Boris Johnson?") Theresa May’s intention to notify Brussels of the UK’s intent to leave the EU by end of March or early April 2017 is likely to cause a number of ripples in financial markets, with the reality of Brexit beginning to be felt according to the IMF’s Subdued Demand: Symptoms and Remedies. 2017 could be a hard year indeed for the UK.” While analysts suggest the pound might rally heading into the New Year, it expected to continue downward later on in 2017. Temporary declines to the mid-to-low 1.20s are not out of the question, although some analysts believe that the GBP/USD will be range-bound between 1.30-1.35, according to the IMF. More than three months after the Brexit vote, the UK economy appears to have weathered the storm. That’s all expected to change next year according to the S&P 500 Futures Decline on [Brexit Risk](https://www.financedigest.com/brexit-the-risks-to-the-city-and-fintech-have-never-been-greater.html "BREXIT: THE RISKS TO THE CITY AND FINTECH HAVE NEVER BEEN GREATER"), as the Conservative government invokes Article 50 of the Lisbon Treaty, which formally kicks off the Brexit process. Theresa May recently said that her government will back a ‘hard Brexit’. ![Brexit, bull markets and the global stage - 2017 predictions from easyMarkets -2](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/brexit-bull-markets-and-th-1736844398736-compressed.jpg) 2. **US dollar bull** [market may continue](https://www.financedigest.com/welding-consumables-market-continue-to-be-largest-product-segment-in-consumer-market.html "Welding Consumables Market Continue to be Largest Product Segment in Consumer Market") With the Federal Reserve expected to raise interest rates in December, the US [dollar is on course for further possible gains](https://www.financedigest.com/stocks-dollar-gain-on-soft-landing-hopes.html "Stocks, dollar gain on soft landing hopes") in the New Year. While the Fed’s rate outlook has changed dramatically compared to a year ago, its policies are clearly diverging with other major [central banks](https://www.financedigest.com/russian-central-bank-gives-legal-entities-green-light-to-trade-foreign-shares.html "Russian central bank gives legal entities green light to trade foreign shares"). This may see the US dollar [trade higher against a basket of global currencies](https://www.financedigest.com/currency-trading-in-a-spin-after-polish-explosion.html "Currency trading in a spin after Polish explosion"). easyMarkets’ Evdokia Pitsillidou comments, “2017 looks to be a good [year for the dollar](https://www.financedigest.com/u-s-dollar-climbs-to-two-year-peak-as-risk-appetite-tumbles-yuan-drops.html "U.S. dollar climbs to two-year peak as risk appetite tumbles; yuan drops"), at least to begin with. The bull [market looks set to continue and we’re expecting](https://www.financedigest.com/sulphuric-acid-market-expected-at-a-cagr-of-3-2-us-13-7-bn-during-the-forecast-period-2021-2031.html "Sulphuric Acid Market expected at a CAGR of ~ 3.2% & US$ 13.7 Bn during the forecast period 2021–2031") to see the Federal Reserve’s policies result in a possible strong dollar for 2017. **3\. [Global growth](https://www.financedigest.com/global-growth-headed-down-as-inflation-surge-to-endure.html "Global growth headed down as inflation surge to endure") may remain weak** While the dollar is looking strong, the [global economy in 2017 is expected](https://www.financedigest.com/global-fuel-injector-cleaner-market-emerging-economies-expected-to-influence-growth-until-2031.html "Global Fuel Injector Cleaner Market: Emerging Economies Expected to Influence Growth until 2031") to be even weaker than previously expected, according to a revised estimate from the International Monetary Fund (IMF). Global [GDP will grow just 3.4% next year](https://www.financedigest.com/austria-plans-to-bring-budget-deficit-within-3-of-gdp-next-year.html "Austria plans to bring budget deficit within 3% of GDP next year"), down from a previous estimate of 3.5%, according to the IMF’s latest projections. Chinese [economic growth](https://www.financedigest.com/economic-growth-risks-jolt-inflation-obsessed-markets.html "Economic growth risks jolt inflation-obsessed markets") is forecast to slow to 6.2%. The future looks a little more [positive for Russia](https://www.financedigest.com/pimco-cut-big-position-in-russia-cds-by-adding-bonds-in-q2.html "PIMCO cut big position in Russia CDS by adding bonds in Q2") and Brazil though, both of which are expected to emerge from recession in 2017, making for some interesting investment opportunities. ![Brexit, bull markets and the global stage - 2017 predictions from easyMarkets -3](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/brexit-bull-markets-and-th-1-1736844398681-compressed.jpg) 4. **International panic is never far away** One concern for 2017 is that the combination of higher US interest rates, a weaker global economy and toxic Brexit negotiations are [expected to weigh on global equity](https://www.financedigest.com/citi-expects-global-equities-to-rally-18-by-end-2023.html "Citi expects global equities to rally 18% by end-2023") prices. easyMarkets’ Evdokia Pitsillidou explains, While it’s difficult to make a hard prediction just yet, the [stock markets](https://www.financedigest.com/online-trading-and-stock-markets.html "Online Trading and Stock Markets") may remain choppy for the foreseeable future. As [Wall Street’s earnings](https://www.financedigest.com/disney-streaming-beats-wall-street-targets-earnings-miss.html "Disney streaming beats Wall Street targets, earnings miss") recession intensifies, US stock indices will have a difficult time extending recent record highs. As Brexit negotiations continue, the scent of panic will never be far from [global markets.”](https://www.financedigest.com/n95-masks-market-rapid-expansion-of-the-life-science-industry-is-anticipated-to-drive-the-global-market.html "N95 Masks Market: Rapid Expansion of the Life Science Industry is Anticipated to Drive the Global Market") 5. **Gold rebound may continue, although path is less certain** As is often the case in times of large-scale uncertainty, [gold is likely to be the darling of many investors](https://www.financedigest.com/gold-investors-face-bind-over-bars-from-tarnished-russia.html "Gold investors face bind over bars from tarnished Russia"). Despite its recent selloff, gold [prices are expected](https://www.financedigest.com/portugal-expects-deal-to-disconnect-power-prices-from-gas-prices-very-soon.html "Portugal expects deal to disconnect power prices from gas prices ‘very soon’") to continue higher in 2017. A slew of global banks including UBS, [Credit Suisse](https://www.financedigest.com/credit-suisse-shares-hit-record-low-after-report-bank-is-looking-to-raise-cash.html "Credit Suisse shares hit record low after report bank is looking to raise cash"), Bank of America Merrill Lynch and ABN AMRO expect gold prices to reach at least $1,400 a troy ounce next year, despite slightly higher US interest rates. This suggests that risk-aversion might be a strong motivator for investors. ![Brexit, bull markets and the global stage - 2017 predictions from easyMarkets -4](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/brexit-bull-markets-and-th-2-1736844398722-compressed.jpg) 6. **[Oil prices](https://www.financedigest.com/stocks-jump-as-treasury-yields-ease-and-oil-prices-sell-off.html "Stocks jump as Treasury yields ease and oil prices sell off") may stabilize, but remain well below 2014 levels** With the worst of the oil-price collapse behind us, crude prices may continue to recover in 2017, although the road ahead will be choppy. According to a recent forecast, oil prices may touch $60 a barrel sometime next year (Deloitte). However, this won’t stop [energy producers from haemorrhaging money and analysts aren’t optimistic that OPEC’s recent production cut deal will have much impact on the future of oil prices](https://www.financedigest.com/putin-sanctions-risk-causing-energy-price-catastrophe-for-west.html "Putin: sanctions risk causing energy price catastrophe for West"). [Goldman Sachs](https://www.financedigest.com/telefonica-hires-goldman-sachs-to-sell-uk-mobile-masts-stake-el-confidencial-says.html "Telefonica hires Goldman Sachs to sell UK mobile masts stake, El Confidencial says") expects West Texas Intermediate (WTI) crude futures to average $53 in 2017. Brent crude, the international futures benchmark, is [forecast to reach](https://www.financedigest.com/hydrogen-vehicle-market-is-projected-to-reach-valuation-of-us-150-million-during-forecast-period-2031.html "Hydrogen Vehicle Market Is Projected To Reach Valuation Of US$ 150 Million During Forecast Period, 2031") $60 a barrel by the fourth quarter of 2017. easyMarkets’ Evdokia Pitsillidou, comments, Even if OPEC members continue to scale back production to boost prices, this might [create more opportunity for US shale producers to get back online](https://www.financedigest.com/increasing-trend-of-online-shopping-to-create-new-growth-opportunities-for-stretch-sleeve-and-heat-shrink-labels-market-says-tmr.html "Increasing Trend of Online Shopping to Create New Growth Opportunities for Stretch Sleeve and Heat Shrink Labels Market, Says TMR"). We’ve already seen it happen in the [third quarter](https://www.financedigest.com/delivery-hero-sees-higher-gross-merchandise-value-in-third-quarter.html "Delivery Hero sees higher gross merchandise value in third quarter") of 2016, where the number of active US rigs rose by 95 – the highest level since 2014. Rig numbers are likely to [rise further as oil prices](https://www.financedigest.com/oil-prices-rise-on-supply-disruption-jitters-as-geopolitical-tensions-grow.html "Oil prices rise on supply disruption jitters as geopolitical tensions grow") stabilize, thus minimizing the impact felt from any scaling of production by OPEC members. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---