whether Goldman deceived their clients?

On April 18 GS recommended going short HUF/EUR.

GS wrote:

"Our view has been that higher US yields would hurt a number of EM currencies (including the HUF). We also thought that ongoing monetary easing in Hungary would further compress interest rate differentials, leading to a gradual weakening in the currency. Although both macro drivers materialized, the HUF strengthened, contrary to our expectation".

"We clearly underestimated the degree of risk premium for weaker economic outcomes already embedded in the currency. In the short life of the recommendation, a number of positive catalysts have emerged, including a strong GDP print and a smooth outcome in the ongoing budget negotiations with the EU".

"Our broader fundamental view has not changed, but having just hit our recommended stop of 290, we recommend closing the position with a potential 2.86% loss (including negative carry of about 32bp in total)".

chart 1, HUF/EUR

It is clear that a "big fish" was present on the market a few days earlier and completely cleaned the market. Then issued a reverse recommendation to increase his exposition.

Customers had to book a loss but the "big fish" has reached a profit without any risk. of course without SL.

Make a conclusions themselves.

regards, oscarjp