Playing it safe

There may be opportunity, but forex traders should be cautious in the new year as volatile conditions could reemerge at any time.

“People are looking for singles as opposed to doubles and home runs in the early part of the year because of the uncertainty on the global front,” Rothfield says. “People had been very defensive in the fourth quarter of the year and had to sell good stuff to offset losses in other areas. We will get some further unwind of the extreme risk aversion and see a temporary return of risk appetite and search for yields.”