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UBS has a positive outlook on the British pound (GBP), Australian dollar (AUD), and Swiss franc (CHF), citing high interest rates and expected monetary easing in the UK and Australia. The firm predicts GBP will rise to 1.35 and AUD to 0.68, while CHF is expected to decline to 0.84 due to narrowing interest rate differentials.In contrast, UBS maintains a neutral stance on the Japanese yen (JPY), forecasting a potential short-term rise to 155 but a medium-term decrease to 145 by 2025. The firm is bearish on the Chinese yuan (CNY), anticipating it will rise to 7.50 amid escalating US-China trade tensions and risks of further depreciation despite efforts to stabilize it.
UBS has a positive outlook on the British pound (GBP), Australian dollar (AUD), and Swiss franc (CHF), citing high interest rates and expected monetary easing in the UK and Australia. The firm predicts GBP will rise to 1.35 and AUD to 0.68, while CHF is expected to decline to 0.84 due to narrowing interest rate differentials.In contrast, UBS maintains a neutral stance on the Japanese yen (JPY), forecasting a potential short-term rise to 155 but a medium-term decrease to 145 by 2025. The firm is bearish on the Chinese yuan (CNY), anticipating it will rise to 7.50 amid escalating US-China trade tensions and risks of further depreciation despite efforts to stabilize it.
UBS is optimistic about the British pound (GBP), Australian dollar (AUD), and Swiss franc (CHF), predicting rises to 1.35 and 0.68 for GBP and AUD, respectively, due to high interest rates. The Swiss franc is expected to benefit from limited interest rate cuts, with a forecasted USD/CHF rate of 0.84.In contrast, UBS remains neutral on the Japanese yen (JPY), anticipating a potential rise to 155 in the short term but a decline to 145 by 2025. The outlook for the Chinese yuan (CNY) is bearish, with expectations of the USD/CNY rate reaching 7.50 by the end of 2025, driven by trade tensions and risks of further depreciation.
The AUD/USD exchange rate has sharply declined to around $0.6350, its lowest level of the year, driven by fears of a Sino-US trade war and a slowdown in Australian inflation. As the currency tests a major support zone, a potential technical rebound could see it rise to $0.66, contingent on shifts in rate cut expectations from the Fed and RBA.
IG
AUD/USD has bounced off a 13-month low of $0.6337, aiming towards the downtrend line at $0.6446, while the EUR/JPY and USD/JPY continue to rise. USD/JPY has surpassed the 200-day SMA at ¥151.99, with potential resistance at ¥153.28 following this week's high of ¥152.86.
IG
Australia's Federal Court has fined Bit Trade, the operator of Kraken Australia, 8 million AUD ($5.1 million) for regulatory breaches, including failing to comply with design and distribution obligations. The Australian Securities and Investments Commission (ASIC) criticized Bit Trade for offering a margin extension product without the required target market determination, resulting in significant losses for over 1,100 Australians. ASIC's chair emphasized the need for crypto firms to adhere to regulatory compliance to protect consumers.
The ASX 200 fell 19 points (-0.23%) to 8333, marking its lowest level in three weeks as markets reassessed the likelihood of an RBA interest rate cut in February following a strong November jobs report, which showed unemployment at 3.9%. The property and consumer discretionary sectors experienced notable declines, while the energy sector rebounded after crude oil prices rose above $70. Technical analysis indicates the index may close below a critical support level, potentially leading to further declines.
IG
AUD/USD and EUR/GBP have fallen to multi-year lows, with AUD/USD dropping to a 13-month low following the RBA's decision to maintain rates at 4.35% while adopting a dovish stance. EUR/GBP has slipped to a 2¾-year low, facing resistance in the £0.8260 to £0.8271 range. Meanwhile, EUR/USD is retreating from a recent high, approaching last week's low of $1.0461.
IG
Metcash's H1 2025 results show mixed performance, with supermarkets performing adequately while hardware and liquor sectors struggle. Group underlying EBIT remained stable at $246.1 million, but Total Tools faced a 16% EBIT decline due to competition and cost pressures. Despite a positive sales outlook for the second half, consumer confidence and ongoing cost challenges remain critical for future growth.
IG
The Nasdaq remains in a strong uptrend, with key support levels at 19,000 and 21,000, despite potential rate cut implications from core CPI data. The ASX 200 faces fluctuations influenced by China's stimulus and the RBA's dovish stance, with a possible pullback to 8200 if support at 8350 is breached.The Australian dollar is under pressure, trading below $0.64, while Bitcoin recently peaked at 103,000 but is expected to pull back to around 90,000, with year-end predictions around 95,000. Gold's rally is inconsistent, with traders eyeing buying opportunities near the 200-day moving average around 2500.
IG
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