2025 will be a year of divergence for the financial markets due to increased complexity and fluidity. Interplay of forces, such as political uncertainty and geopolitical risks, will heighten volatility. This means traders will have abundant opportunities to explore. They will, therefore, look for a broker that empowers them to capture such opportunities.
Supporting Your Traders in 2025 and Beyond
Global GDP growth will remain robust at 3.3% in 2025, while global inflation is expected to decline steadily from 5.9% in 2024 to 4.5% in 2025. New governments, elected in over 70 nations in 2024, intensifying geopolitical tensions, and expectations of the US’s tariff-based trade policies will be the most impactful factors driving the financial markets in 2025. Here’s a look at how different markets could be affected.
Forex
The US dollar, which surged 7% in 2024, is likely to remain strong through 2025, while the euro may remain under pressure. Due to persistent inflation and resilient economic growth in the US, the Fed is expected to introduce only 2 quarter-point interest rate cuts.
However, the Eurozone, which is close to achieving its target inflation, may accelerate rate cuts to spur economic growth. This may keep the interest rate differential between the USD and EUR high, supporting the greenback. Supported by the Bank of Japan’s (BoJ) monetary easing and hawkish interventions, the Japanese yen may appreciate against the dollar with the USD/JPY potentially reaching 152 by March-end.
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Equities
The S&P 500 may reach 6,500, exhibiting modest growth. However, growth stocks that have been driving the benchmark’s performance may underperform in 2025. Value and small-and-mid-cap stocks are expected to outperform the S&P 500, thanks to potential corporate tax cuts by the new US government. As of December 2024, the optimism around small business performance has increased while uncertainty has declined.
Integrate Acuity’s AssetIQ widget on your trading platform to keep your traders on top of price moves with extensive asset-by-asset insights. The tool includes traditional price data, powered by Dow Jones, as well as alternative data (sentiment data) from nontraditional sources, such as social media chatter. All this data is clarified and assessed for relevance. Each identified opportunity is assigned an opportunity score to give traders a razor-sharp understanding of the markets.
Commodities
While commodities are expected to hit a 5-year low in 2025, the energy and precious metal segments will exhibit strong performance. Global energy demand is forecasted to grow 1.6%. In its December 2024 meeting, OPEC+ delayed production hikes till April 2025. On January 20, 2025, over a month after the OPEC+ nations agreed to hold production cuts, Brent Crude rose 7.4% to trade at over $80 per barrel.
However, as Donald Trump’s “Drill Baby Drill” pledge comes into force, oil supply may surpass the tepid global demand growth. This may weigh on Brent and WTI prices. Also, Trump’s policy changes around vehicle emissions and clean energy project incentives will impact the renewable energy markets, inducing volatility.
Continued geopolitical uncertainty and the intensifying conflict between Ukraine and Russia and in the Middle East will keep gold demand high. Plus, the demand from central banks to de-link their economies from the USD will further support the precious metal’s price. Gold may reach the $3,000/oz mark in 2025. Silver is, however, expected to outperform gold. It is extensively used in PV cells and EVs. Plus, its demand is set to rise as the shift to clean transport and energy accelerates. Growing industrial applications, combined with a supply deficit, may push the white metal’s price closer to $38/oz.
The key to supporting your traders is enabling them to stay updated on market-moving events. Acuity’s NewsIQ brings the most impactful news to your traders helping them to discover unique insights and opportunities. Features, such as hot news, trending instruments and news analysis help traders cut through the online infobesity.
Cryptocurrencies
With the launch of Ethereum and Bitcoin ETFs, the crypto markets will remain hot in 2025. Also, the new US President’s strategic BTC reserve signals an increase in demand for the original cryptocurrency. Consequently, some analysts believe Bitcoin could rise as high as $250,000.
To enable your traders to explore the massive opportunity, make Acuity’s AI-powered AnalysisIQ widget a part of their trading toolkit. In the fast-moving crypto markets, AI-driven automated signals could prove beneficial to time entries and exits.
Sharp Investment Insights and Powerful Analysis
As a broker, you must support your traders with cutting-edge tools, analytics and data trends to make informed decisions. In-depth asset-wise analysis can empower your brokerage to:
- Maximise revenue opportunities
- Widen your client base
- Stimulate trading activity
- Educate traders
Acuity’s Research Terminal is a centralised research platform, integrated with asset-to-asset analysis tools, instant news insights and a market analysis toolkit. Equipped with economic and corporate calendars, this is a comprehensive platform to maximise the AI advantage and ease timely decision-making. To make the most of Acuity’s market intelligence, you can equip your traders with dynamic emails that show the relevant information based on when the email is opened, irrespective of when it was delivered.
Request a demo to learn more about enhancing trader experiences. You can seamlessly integrate the complete trading toolkit or pick and choose your favourite tools from the suite of offerings.
Trader Psychology
