The firm had previously anticipated potential rate hikes towards the end of 2021 or at the beginning of 2022. These predictions were in line with market expectations of an 18 basis point increase by March 2022.
In other developments, Goldman Sachs recently opted to exit its short position on EUR/CAD due to the Canadian dollar’s risk sensitivity and ongoing global geopolitical concerns.
Despite these moves, Goldman Sachs maintains a positive outlook on the future strength of the Canadian dollar. This optimism is bolstered by rising oil prices and steady economic performance from the United States, factors which they believe will contribute to the Canadian currency gaining strength against other currencies in the future.
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Source: Economy - investing.com
