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

    China’s market regulator promotes agricultural standardization in Zambia to deepen Sino-African ties

    Commodities
    Leave A Reply Cancel Reply

    Top Picks
    Cryptocurrency

    New Cryptocurrency Releases, Listings, & Presales Today – CMX Agent, Edenlayer, CryptoDM

    Commodities

    NMB Chamber forges closer ties with agricultural sector

    Investments

    Making Money Move: Maximizing Returns Through Property Investments In Turkey

    Editors Picks

    US property developer claims Iraqi president ordered her kidnap, 43-day torture with beatings and electric cords: lawsuit

    May 14, 2025

    Keck Seng Investments (Hong Kong) Limited approuve le dividende final

    June 2, 2025

    Offshore ownership of American real estate is a black box. The Treasury has the power to open it.

    August 13, 2024

    Yolo Investments completes raise for €100m Fund II

    June 19, 2025
    What's Hot

    Transcript : Aditya Birla Real Estate Limited, Q4 2025 Earnings Call, May 15, 2025

    May 15, 2025

    GT World : Victoire Mercedes à Monza, podium pour Comtoyou

    June 1, 2025

    Maximizing Yield: Small Changes Lead to Big Profits Amid Low Commodity Prices

    October 24, 2024
    Our Picks

    Agricultural waste turned into pulp to create sustainable clothes

    June 19, 2025

    No Golden Visa for cryptocurrency investors, UAE clarifies

    July 7, 2025

    3 Premium TSX Dividend Stocks Worth Loading Up On

    February 15, 2025
    Weekly Top

    This 6.1% Monthly Dividend Stock is a Cash Flow Machine

    July 9, 2025

    Pakistan plans digital currency pilot

    July 9, 2025

    RBA pushes ahead with stablecoin and digital currency trials — Capital Brief

    July 9, 2025
    Editor's Pick

    Le Real Madrid domine la Real Sociedad grâce à Mbappé pour la dernière de Modric à domicile

    May 24, 2025

    Ethiopia’s Agricultural Reforms Yield Transformative Results: Minister Girma – ENA English

    March 31, 2025

    Is Long-Term Care Insurance Worth the Money?

    July 12, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

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