Goldman Sachs revised down its USD/CAD, AUD/USD, and NZD/USD forecasts.
“We have revised our forecasts for USD/CAD to 1.38, 1.34, and 1.28 in 3, 6, and 12 months (vs 1.33, 1.30, and 1.26 previously),
while our new forecasts for AUD/USD are 0.62, 0.67, and 0.71 (vs 0.67, 0.69, and 0.73 previously)and NZD/USD are 0.54, 0.60, and 0.64 (vs 0.59, 0.61, and 0.65 previously),” GS notes.
“That said, there are certainly risks to the broader view that could tilt the market into another risk rally, where yields come off, equities rise and the Dollar weakens. In this scenario, we think NZD and AUD would outperform CAD and USD, especially NZD on hawkish Fed relief, while CAD strengthens vs USD but is held back on crosses by its stronger ties to the Dollar,” GS adds.