Adding to that, they are noting that the three currencies mentioned are showing a lag compared to higher-carry EM currencies with unusual relative weakness being observed.
Goldman Sachs is arguing that risk sentiment alone isn't enough to explain what is happening. Instead, this seems more to do with domestic policy shifts with terminal rate pricing falling in Australia, New Zealand, and Canada. The firm adds that weaker domestic backdrops are also in play, warranting caution for the respective commodity currencies above.
In taking advantage of downside catalysts for the dollar - which the firm attributes to Fed easing, policy uncertainty, and global flows - there are better options via the EUR and JPY. As such, Goldman Sachs is maintaining a more cautious bias on the AUD, NZD, and CAD but reaffirms that USD weakness could offer some form of upside still.
This article was written by Justin Low at investinglive.com.Hence then, the article about commodity currencies may only offer limited upside against dollar weakness goldman sachs was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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