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The Goldman Sachs Analysts, in their latest client, offer a medium-term view on the US dollar, with the risks skewed towards the downside.

Key Quotes:

“Sticking with their bearish US dollar call for the medium term.”  

Reasons for the bearish outlook:

“Robust case for improving European growth in coming quarters and stimulus from China.

US rates are high compared with a trade-weighted average of G10 rates.

USD could drop when rate differentials fall  80-100 bps (US 2 year notes) that EUR and GBP will benefit.”