Goldman Sachs Recommends the Krone

Goldman Sachs recommended that investors sell the U.S. dollar to buy the Norwegian Krone, according to Bloomberg. That recommendation was predicated on the assumption that oil prices would continue to rise this year. Goldman expressed optimism for the global economy, recommending investors consider taking positions in copper and zinc as demand will tighten supply. If Goldman's prediction proves to be true, investors may wish to consider other options beyond the Krone. The Canadian and Australian dollars have traditionally correlated in value to the price of commodities; the Canadian dollar especially correlating with the price of oil. Investors may wish to consider CurrencyShares Canadian Dollar Trust FXC as it attempts to return a value corresponding to the value of the Canadian dollar. Investors may also wish to consider a play on the Russian ruble. The ruble rallied on Tuesday as the price of oil increased. Traders may wish to consider CurrencyShares Russian Ruble Trust XRU as it attempts to return a value corresponding to the Russian currency. Gold, too, has been moving in a similar pattern with oil the last couple years. However, gold has traditionally been thought of as an inflation haven and a play against weak currencies. If the Krone is moving up against the dollar on global growth, it may not necessarily be bullish for gold. Traders bearish on gold might consider PowerShares DB Gold Double Short ETN DZZ which attempts to inversely correspond in value to the price of gold.