be seen Goldman Sachs Bankthat although the US dollar strengthens when a recession looms, all scenarios are possible when a recession becomes a reality, anticipating two possibilities for the dollar in the coming weeks.
He explained that the first possibility states that if the prospects for global growth improve, the dollar will witness weakness as investors turn towards higher-risk assets, noting that in this possibility, the Canadian dollar is preferred.
He added that the second possibility is that the economy will enter a recession, which will cause uncertainty towards the dollar.
Regarding the last possibility, the bank expected to go to the Japanese yen, which usually rises in times of recession, pointing out that the yen may register a rise of regarding 20% once morest the dollar in this scenario.
And “Goldman Sachs” lowered its forecast for economic growth in the United States to 2.4% this year and 1.6% next year, down from 2.6% and 2.2%, respectively, in previous forecasts.
Bank Chairman Lloyd Blankfein said the United States should prepare for a recession, as there is a narrow path to avoid.
“There are very high risks if companies and consumers do not prepare for this,” he added.
