Goldman Sachs say the USD is now 'meaningfully overvalued' and their view ahead is skewed to the downside for the dollar.

However, on euro:

We are cautious EUR and satellite currencies over the near-term due to

  1. lockdowns
  2. and ahead of potential ECB easing next month

The note is longer but that's it in a nutshlell.

What do GS like instead?

We therefore prefer expressing pro-growth views through CAD and AUD

  • Both Canada and Australia are handling COVID fairly well and their central banks should be done cutting rates.
  • We think JPY can appreciate despite higher bond yields on more favorable net portfolio flows.
  • We forecast further Yuan gains, with USD/CNY falling to 6.30, as relatively high yields attract inflows

GS outlook for a weaker USD underlies much of their other views: