Goldman Sachs cautions dollar bears: 'hold your horses' - Bloomberg
|The US dollar is heading for the worst quarter since the start of 2018 and the enthusiasm for the bearish trade is running high.
Goldman Sachs analysts, however, believe the dollar may not drop significantly and have some advice for any traders betting on a start of a major downtrend for the dollar: “Hold your horses.”
“For the dollar to depreciate meaningfully, the euro and yuan need to appreciate meaningfully and we do not see a compelling case for either at the moment," Zach Pandl, co-head of global foreign exchange and emerging-market strategy, wrote in a note Dec. 15, according to Bloomberg.
Barclays startegists have also cautioned investors against betting on continued US dollar weakness.
Meanwhile, Morgan Stanley and UBS Global Wealth Management expect the single currency to gain groud against the greenback in 2020.
Dollar index, which tracks the value of the greenback against majors, is currently trading at 97.23, representing a 2.18 percent drop on a quarter-to-date basis.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.