Short EUR/CAD to go ‘long oil’ – Goldman Sachs
|Alexander Demyanets, Research Analyst at Goldman Sachs, suggests that short EUR/CAD is their preferred “long oil” opportunity.
Key Quotes
“We expect G10 commodity currencies to appreciate given: (i) the strength of their domestic economies, (ii) scope for more hawkish pricing of their monetary policies and (iii) a rebound in oil prices in H2. We forecast more appreciation in NZD and CAD than in AUD and NOK.”
“Historically CAD has been the G10 currency with the highest beta to oil. We see the most upside in G10 commodity currencies versus the EUR, as market pricing ahead of the June ECB meeting looks too hawkish. Short EUR/CAD is our preferred “long oil” opportunity.”
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