Goldman Sachs on the US dollar
FX strategists at Goldman Sachs warn that another leg lower in the US dollar could come from momentum traders and longer-term investors looking elsewhere.
Even though leveraged traders are already heavily betting on a weaker US dollar, Goldman says that "fresh shorts could be triggered soon" and "longer-term investors" may also start to participate, particularly in the euro and other European assets.
They warn that lower liquidity in FX in August could also exacerbate the moves. Another trade they like is AUD/NZD from the long side.
