Goldman Sachs FX recommendation - long yen against CAD
Via a Goldman Sachs client note, citing "risk-aversion will remain high" and thus likes yen vs. the Canadian dollar
- Looks for a "longer period of virus-related uncertainty" in markets
- Dollar bloc currencies to underperform
- BoC may move even more dovish
- Virus was a regional concern, but now becoming a more protracted global phenomenon - to impact confidence and supply chains well beyond the worst affected areas
- A US outbreak to weigh on domestic growth, have possible implications for Fed policy, US slow down a clear risk
On that US possible outbreak … US President Trump press conference coming up at 6.30pm Washington time, which is 2330GMT.
Given this White House is characterised by anti-science denialist bullshit and has decimated CDC pandemic defences expectations for anything of value from the talking head are low.
"Vaccine is close!" is the new "Trade deal is close" we got for about two years. Mexico is paying for the wall too.