Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Commodities»UBS sees these trading opportunities in Forex and commodities By Investing.com
    Commodities

    UBS sees these trading opportunities in Forex and commodities By Investing.com

    July 20, 20242 Mins Read


    The has climbed more than 3% since the start of the year, driven mainly by strong US economic data and interest rate cuts in other major economies. However, UBS strategists believe these periods of dollar strength can be used to reduce dollar exposure or to engage in volatility selling strategies to generate income, anticipating likely rate cuts later this year.

    In real trade-weighted terms, the US dollar is not cheap, currently at levels similar to those seen in the mid-1980s and early 2000s, strategists noted.

    “We believe depreciation pressures could mount if markets start to price a deeper Fed rate-cutting cycle. Fears about the size of the US fiscal deficit may also contribute to a weaker greenback over the longer term,” they wrote.

    A Republican sweep of the White House and Congress could raise expectations for a stronger dollar. However, given the already elevated value of the US dollar, which is 17–18% stronger than when President Trump first took office, “we would expect this effect to be weaker than during Trump’s first term,” UBS’s team added.

    Among global currencies, the bank has the most preferred stance on the Swiss franc. The currency has depreciated by around 6% against the US dollar year-to-date, with the Swiss National Bank (SNB) being the first major central bank to cut rates.

    “We expect the Swiss franc to appreciate from here and move the currency to most preferred from neutral,” strategists said.

    UBS expects the SNB to further lower its policy rate to 1.00% from 1.25% following June’s rate cut. The franc is known for its safe-haven qualities, offering stability amid political uncertainty in Europe, the United States, and elsewhere.

    Moreover, strategists see several more opportunities in the commodities market.

    They forecast prices to end the year at around $87 per barrel, supported by solid demand and OPEC+ efforts to balance the market. For risk-tolerant investors, selling Brent’s downside price risks could be considered.

    Strategists also expect the market to remain in a deficit from a fundamental perspective, forecasting the metal to reach $11,500 per metric ton by year-end.

    For gold, the bank retains its bullish view, primarily due to strong central bank reserve diversification demand and its role as a portfolio hedge ahead of the US elections. In their base case, UBS forecasts gold rising to $2,600 per ounce by year-end and $2,700 per ounce by mid-2025.





    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Le projet d’usine de GNL de Marinvest Energy serait-il cohérent avec les cibles climatiques du gouvernement du Québec?

    Commodities

    les géants français du metal en tournée dans toute la France… et des places encore disponibles !

    Commodities

    VAALCO mise sur Baobab, malgré sa production marginale

    Commodities

    Haiti – Agriculture : Colombia and Haiti progress in their agricultural cooperation

    Commodities

    le premier parc éolien en Nord-Vienne inauguré

    Commodities

    Stumping Bob Brackett on Commodities

    Commodities
    Leave A Reply Cancel Reply

    Top Picks
    Precious Metal

    Bourse de Toronto, Endeavour Silver Corp., Perspective de la haute direction -Le 18 mars 2025 à 17:02

    Precious Metal

    MAC Copper conclut un accord contraignant avec Harmony Gold ; les actions bondissent de 20 %

    Cryptocurrency

    Surprising Ways You Can Use Cryptocurrency In 2025

    Editors Picks

    US wholesale: Week 11 ‘market pulse’ updates available on key seafood commodities

    March 10, 2025

    FIP Silver Rio Grande – Les “BB” se qualifient facilement en quart de finale

    February 14, 2025

    Charter Hall Retail REIT augmente sa participation dans Hotel Property Investments à près de 67%. -Le 24 janvier 2025 à 01:03

    January 23, 2025

    New Cryptocurrency Releases, Listings, & Presales Today – JuChain, Ceylon, Zentium Tech

    July 9, 2025
    What's Hot

    Will There Be a ‘Brütal Legend 2’? We Hope So

    October 20, 2024

    Chrysalis Investments enregistre une valeur nette d’inventaire en hausse au premier trimestre

    May 8, 2025

    Algonquin Power & Utilities nomme un directeur de la réglementation et des affaires extérieures

    June 9, 2025
    Our Picks

    Commercial property: is it time to invest?

    June 27, 2025

    Russian grain exporters to supply directly to 13 countries, bypassing foreign traders

    October 18, 2024

    Want at Least $1,000 in Passive Income per Year? Invest $10,000 in Each of These 3 Dividend Stocks.

    July 1, 2025
    Weekly Top

    Why China’s jewellery giants are selling less amid a precious metal boom 

    July 9, 2025

    SBP plans pilot for digital currency – Newspaper

    July 9, 2025

    Cryptocurrency News Live: Bitcoin, Ethereum, Solana prices today; memecoin updates

    July 9, 2025
    Editor's Pick

    Sumou Real Estate remporte le contrat pour le développement de villas résidentielles dans le cadre du projet Makkah Gate

    April 20, 2025

    Panic Is Spreading Among Cardano Cryptocurrency Holders, Is A Massive Sell-off On The Horizon?

    October 28, 2024

    Council to revisit Willmar Municipal Utilities land purchase on Monday, April 7

    April 5, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.