Now they’re just kicking the poor greenback while it’s down.
Bloomberg: Goldman Sachs Group Inc. said the dollar is likely to extend drops against the euro and commodity- backed currencies over the coming six months, based on the greenback’s correlation with cyclical assets and capital flows.
The dollar will weaken to $1.55 versus the euro in three and six months, the bank said, revising previous forecasts of $1.45 for both periods. The U.S. currency, which has fallen versus all of the 16 most-traded currencies this year, will recover to $1.35 in 12 months, Goldman Sachs said. The bank left its dollar-yen forecasts unchanged.
Of course, this is good news for equity investors, given the tight inverse correlation between stocks on the dollar. A surprise move higher, rather than a continued drift lower at the current pace is what would really sucker-punch this market.