Author: Daniel Chang
Daniel Chang
Daniel Chang's passion for finance and technology has driven his career in the financial markets. With a background in both quantitative analysis and market strategy, Daniel excels at breaking down complex market movements into actionable insights. He has worked with leading financial institutions and trading platforms, where he has contributed to the development of innovative trading tools and educational content.
The U.S. dollar recently soared to multi-year highs, prompting some analysts to argue that the currency’s latest rally has already accounted for the so-called “Trump Trade,” leaving limited upside potential and opening the door for bearish positions on the greenback. On Friday, the U.S. Dollar Index climbed 0.5% to 109.67, briefly touching 109.91—a level not seen since November 2022. According to Chester Ntonifor, a Foreign Exchange and Global Fixed Income Strategist at BCA Research, this milestone suggests the dollar has reached an overvalued state. “If the DXY surpasses our 110 target, it’s time to start selling the dollar,” Ntonifor wrote…
Analysts at BCA Research have outlined a series of potential geopolitical events that could have a significant impact on global financial markets in 2025. These events, while unlikely, represent major risks capable of reshaping economic strategies and investor sentiment. Often referred to as “black swans,” such scenarios could trigger widespread economic and political consequences. China’s Economic Transformation One possible development could arise from China. While the country has been pursuing cautious economic stimulation, a radical shift in its policies might lead to a surge in domestic and international equity markets. Analysts speculate that aggressive fiscal measures, market-friendly reforms, and a reduction…
Bank of America analysts have updated their long-term projections for the U.S. dollar, now forecasting a stronger performance through the end of 2025. This shift follows recent U.S. election results, which have altered the broader consensus among currency experts. While previous outlooks were bearish on the dollar for the latter part of 2024, sentiment has now turned more optimistic. Projections for the euro-dollar exchange rate (EUR/USD) indicate only a slight increase to 1.05 by the end of 2025. This contrasts with the 12-month EUR/USD forward average of 1.0679 recorded over the past month. Similarly, the dollar-franc exchange rate (USD/CHF) is…
As 2025 begins, global stock markets are benefitting from a generally supportive environment, but Goldman Sachs has cautioned that current valuations may be overly optimistic, leaving room for potential corrections. In a note dated January 9, the bank highlighted that fears surrounding high inflation and rising interest rates, which dominated much of 2022 and 2023, have eased. Goldman Sachs now anticipates continued global economic growth into 2025 and beyond, supported by lower interest rates a scenario historically linked to strong equity performance. Despite this optimistic outlook, Goldman Sachs flagged three major factors that could complicate the prospects for stock markets…
Investment research firm Argus has highlighted Apple Inc. (NASDAQ: AAPL) and NVIDIA Corporation (NASDAQ: NVDA) as its leading stock picks for 2025, citing their cutting-edge advancements in generative AI and hardware technology. Apple’s target price has been set at $280, driven by the anticipated impact of its “Apple Intelligence” AI, which debuted with the iPhone 16 Pro series. The firm expects this innovation to fuel a strong upgrade cycle in 2025. Argus also emphasized Apple’s solid earnings growth potential, bolstered by demand for its hardware, rising services revenue, and significant shareholder returns. Analyst Jim Kelleher remarked, “The current market conditions…
Bank of America Securities has described the US dollar as “priced for perfection” following its sharp rally since the most recent presidential election. The currency reached a 55-year high in real effective terms by the end of 2024, continuing an upward trend that began in mid-2011. Analysts at BoA noted that in nominal terms, the dollar has also hit extremes. Based on the BIS Nominal Effective Exchange Rate (NEER) broad index, the dollar is now the strongest it has been in the 30 years since the metric’s inception. In a report dated January 8, they highlighted the dollar’s overvaluation, pegged…
Analysts at Bank of America (BofA) have raised questions about the sustainability of the recent decline in the Swiss Franc (CHF). While many investors are shorting the CHF due to expectations of policy divergence, BofA argues that the currency’s current weakness might not persist for long. The Swiss Franc remains near the levels it traded at early in 2024, reflecting its continued overvaluation. The Swiss National Bank (SNB) has signaled the potential for interest rate cuts, which could even return to negative territory. However, BofA believes the SNB is hesitant to fully reintroduce unconventional monetary policies. The analysts are particularly…
Nvidia’s stock soared to an all-time high after the company unveiled groundbreaking updates to its product lineup. CEO Jensen Huang, speaking at the Consumer Electronics Show in Las Vegas, introduced the latest RTX 50 series of graphical processing units (GPUs) and confirmed that Nvidia’s next-generation Blackwell AI chips are now in full production. Shares of Nvidia (NASDAQ: NVDA) opened at $153.03 on Tuesday, marking a new record for the tech giant, which continues to dominate the AI hardware market. Huang revealed that the RTX 50 series, led by the flagship RTX 5090, will deliver at least double the performance of…
The U.S. dollar faced a sharp decline on Monday, dropping over 1% after the announcement of a “universal tariff” plan by the new U.S. administration. The move has sparked speculation about whether the dollar is entering a prolonged downtrend, reminiscent of its consistent decline during President Trump’s first year in office in 2017. However, analysts at Bank of America (BofA) remain cautious, stating there is insufficient evidence to confirm a lasting downtrend for the dollar. Following the selloff, the dollar index (DXY), which tracks the currency’s performance against a basket of major counterparts, fell to 108. This level is seen…
Goldman Sachs has adjusted its forecast for gold prices, pushing its $3,000 per ounce target to mid-2026. Previously, the investment bank anticipated reaching this milestone by the end of 2025. The revision reflects updated expectations for Federal Reserve policy, with Goldman now predicting fewer interest rate cuts in 2025. Economists at the bank foresee a reduction of 75 basis points instead of the earlier projection of 100 basis points. This slower pace of rate cuts is expected to temper demand for gold-backed ETFs, delaying the anticipated price surge. In a research note released Monday, Goldman Sachs stated, “We now expect…