Goldman Sachs analysts said in their latest client announcement, “Trading recommendations against a basket weighing the same as the Canadian and Australian dollars remains our favorite to express our agreement to the global increase in G10 FX in Canada and globally is.”
Important quotes
“CAD in particular should continue to participate in the broader dollar weakness, as it benefits from effective virus control and high beta of global growth and oil prices as well as a political outlook.”
“The virus remains relatively well controlled in Canada and vaccinations continue. Recent delays in vaccine delivery only reflect temporary supply bottlenecks as the manufacturing facility is being upgraded to increase capacity and some provinces return their doses Has reversed previous decisions taken, due to the relatively slow delivery initially. “
“Our upside-consensus growth expectations should also support another rally in oil prices in 2021, with additional fiscal stimulus in the US and CAD and other oil exporters’ currencies to benefit from.”
“Finally, the relative monetary policy outlook should also favor CAD in the medium term. While the Bank of Canada has left its monetary policy unchanged, the statement indicated an imminent recession, provided” the economy and inflation broaden Line in form or stronger than forecast. “
“We think the signal is in line with our forecast for tapering in Q3 this year, before the Fed exceeded our expectation for tapering in early 2222.”
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