The 12 Charts of Christmas from CitiFX

The folks at CitiFX are out with their annual 12 charts of Christmas. In their view, the intention of these charts is to establish a ‘starting point’ for views as we head into 2013. There’s a lot of juice in this presentation. Here are a few of the bullet points via zerohedge:

What do we believe for 2013?

  • Initial claims will follow a similar path to that seen in the 1970s and begin to move higher in 2013. This will be the first indication that further trouble lies ahead. The 2’s – 5’s curve will eventually move higher also but not before posting one last move down.
  • U.S. 10 year yields will have one final push down towards 1%-1.2% at which point they could bounce up like a “beach ball let go underwater”.
  • EURUSD will fall towards 1.20 in Q1 2013 and possibly even 1.10-15 with parity a real possibility in 2 years. We also expect a rally on the USD Index this year of about 15% which suggests that this move will be predominately driven by EURUSD (57.6% of the USD-Index).
  • USDJPY will eventually move higher as the interest rate dynamic kicks in and we would not be surprised to see a move into the low 90s over the course of the year.
  • We expect Gold to move to $2,055 -$2,060 in the first quarter of 2013 a and ultimately a rally towards $2,400 in 2013.
  • Crude Oil (Brent) should rally to the 2011/2012 highs around $125 and possibly move to all time highs in 2013.
  • The DJIA will drop over 20% towards the 10,000-10,500 area.

A couple of the charts that I found interesting (click to embiggen):


See all 12 charts from CitiFX

12 Charts of Christmas 2011 – CitiFX