Goldman Sachs: long-term USD bulls
Analysts at Goldman Sachs point out that although the Fed’s trade-weighted index for the dollarversus the majors shows that the currency has strengthened almost 6% year-to-date, the index remains 7% below its long-term average. As a result, the specialists see potential for more USD strength in coming months. According to their long-term forecast, the greenback will appreciate by 20% by 2017.
Goldman says the same thing about the British pound, which is around 8% below its historical mean level. The specialists are bearish on EUR/GBP.
The single currency, on the contrary, is 8% above its low in July 2012, so GS thinks that euro is still expensive and will decline to $1.20 in a year and to 1.00 by the end of 2017.