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.
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