Goldman Sachs sees significant dollar depreciation in the next year
The firm argues that the nominal trade-weighed dollar will see a 6% drop over the next year, pushing EUR/USD to 1.25 and USD/JPY to 100.00. Adding to that, they are forecasting that USD/CNY will also fall to 6.30 in the next 12 months.
This isn't so much so a case of a Biden victory, as the narrative would have been arguably the same even if Trump won the election - just with a slightly adjusted timeline.
But the view above appears to be a growing consensus in the market, and that can always be a little dangerous as it can be prone to sharp squeezes from time to time.
