Goldman Sachs wary of being short US dollars

Via eFX, a summary of Goldman Sachs, main points:

  • Market Dynamics: Recent data and Federal Reserve actions have blurred the clear divergence in monetary policy that had previously supported a bearish USD outlook.
  • Carry Trade Interest: There is a renewed interest in carry trades, indicating a shift in market sentiment towards holding currencies with higher yields.
  • Strategists’ View: Goldman Sachs strategists see limited potential for further pressing USD shorts, given the current market conditions.
  • Trading Position: The current positioning in various currency pairs makes it challenging to recommend initiating new USD shorts.

This one from eFX is not gated, a little more here.

This article was written by Eamonn Sheridan at Source