Goldman Sachs is noting that even with potential for dollar weakness coming through, there is caution to be heeded in chasing commodity currencies as the play for that. The firm says that the AUD, NZD, and CAD have all touched or nearly touched their 3-month targets but have since eased against the dollar.
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.
So, what gives?
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.
Read More Details
Finally We wish PressBee provided you with enough information of ( Commodity currencies may only offer limited upside against dollar weakness - Goldman Sachs )
Also on site :
- ‘The Princess Bride’ Star Cary Elwes Shares Tribute to Rob Reiner: ‘From That Very First Meeting I Fell In Love With Him’
- A Shockingly Recent Year Just Cracked the Top 5 of Rock's Most Legendary Years
- SFM Announcement: Kessler Topaz Meltzer & Check, LLP Encourages Sprouts Farmers Market, Inc. (SFM) Investors to Contact the Firm About Securities Fraud Class Action Lawsuit