2025 Technical Market Forecast: What to expect?
2024 has been a rollercoaster year, from interest rates cut & hikes, to an unstoppable gold & bitcoin bulls, to indexes hitting new highs. As the year comes to an end, we reflect on the (now past) market performance whilst also reflecting on what would come in the market this year.
Here are my 2025 picks and what I expect
1. Bitcoin: bitcoin is a technology that combines cryptography, decentralization, and digital currency. It has influenced the creation of thousands of other cryptocurrencies, bitcoin remains the first and most well-known crypto coin with a market cap of $1.85T and most valuable crypto asset, bitcoin had a very impressive 2024 surpassing the $100,000 price with a 1year performance of 119% and a Y- T-D performance of 118%, bitcoin sits so high. This impressive pair makes it to this list. I expect a short-term sell on bitcoin to the $49,000 price and ultimately new highs leading to price discovery in 2025.
2. Gold: this most valuable commodity, highly volatile and liquid. Gold also had a good 2024 with a 1year performance of 26.43% and a Y-T-D performance of 26.63%, gold is well sort after. Making impressive monthly new all-time-highs in 2024, what are to expect in 2025? Ideally, I naturally expect a continuation of this bullish momentum. However, focusing on the very near future, I expect gold to make a new all-time-high high in January 2025.
3. Nikkei225: The Nikkei225 is a stock market index that tracks the performance of 225 leading publicly traded companies listed on the Tokyo Stock Exchange (TSE). It is one of the most widely recognized index of Japan's stock market and overall economic performance, the well traded Japanese index showed an impressive seasonal compared to the previous two years. Kicking open 2024 with a price of 32,728, making an explosive first half, reaching a peak 42,555.25, experiencing strong dips and resuming strength. I expect short selling on the Nikkei225 index to the 24,000 price mark before creating a new all- time-high.
4. EUR/ JPY: The EUR/JPY currency pair is usually driven by shifts in economic data, interest rate decisions, geopolitical events, and risk sentiment in global markets, this combination of a base EURO and a quote YEN currency also presents with a decent opportunity. Reaching a high of 175.426, I expect EUR/ JPY to make contact with the 151.402 mark before proceeding to retake 2024 high of 175.426 and beyond.
5. USD/ MXN: The USD/MXN currency pair is volatile, especially around political events, oil price movements, and U.S.-Mexico trade relations, these two currencies in North America combine to give us this exotic market. Following a positive 2024, I expect massive selling on USD/ MXN to the 16.0000 mark in 2025 and beyond.
6. GBP/ CAD: The Cable is one of the most valuable currency in the world, the official currency of the United Kingdom. Paired against another power house currency, the Canadian Dollar, presents us with a good long-term plan as I expect an impressive long momentum on this pair in 2025 and beyond with a stunning 2900+ pips move to the upside from 2024 close. A target price of 2.09721 is expected in the future.
7. HK50: The HK50 tracks the top fifty largest companies in Hong Kong. It is the official stock market basket in Hong Kong. It is a free floating, capitalization-weighted index with a base value of 100 as of June 30, 1964. This index is primarily derived from over-the-counter trading and contracts for difference indexes (CFDs), I expect the index to reclaim the 23481.1 level from the 20,019.7 level at December 2024 close in the first few months of 2025.
Note: Nothing contained herein constitutes investment advice, or the recommendation of or an offer to sell, or the solicitation of an offer to buy or invest in any investment instrument. Historic market trends are not reliable indicators of actual future market behavior or future performance of any particular investment. The investment strategy discussed herein may be inappropriate for investors depending on their specific investment objectives. Information contained in the material has been obtained from sources believed to be reliable, but not guaranteed. You should note that the materials are provided "as is" without any express or implied warranties. All investments involve a degree of risk, including the risk of loss. Investing is subject to market risks. Views represented are subject to change at the sole discretion.
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