Why FX Volatility Will Dominate Markets In 2025 | Brent Donnelly

Why FX Volatility Will Dominate Markets In 2025 | Brent Donnelly – Forward Guidance

Bullish:

$USDRESERVE - The US dollar is expected to maintain its dominance as the global reserve currency for the long term.
$USD - The current economic situation is compared to the 1990s, suggesting a bullish outlook for the US dollar.
$FXVOL - FX volatility remains high compared to other asset classes, potentially due to its role as a release valve for tariffs.
$USDCNH - China's approach to currency management prioritizes stability over economic management, suggesting potential for USDCNH appreciation.
$USDJPY - Potential for carry trades to restart if the Bank of Japan signals neutral rates, which would be bullish for USDJPY.

Bearish:

$CAD - Bearish outlook on the Canadian dollar due to high consumer debt and unsustainable debt service ratios, although the target has been reached.