It seems like Goldman Sachs, an American multinational investment bank, is preparing for depreciation of the greenback in the near future. It would be a good idea to pay close attention to the financial giant’s strategy. Currently, the bank is opening short positions on US dollars and is actively selling derivative instruments. All this indicates that Goldman Sachs is betting against the greenback. According to the investment bank, the main reason for that is the steady reopening of economies across the world. The stabilization of the coronavirus situation is gradually increasing appetite for risk therefore luring investors out of the traditional safe-haven currency. Nowadays, many holders of dollar assets, including the US government debt, are considering investment with higher yield denominated in other currencies. This can only mean one thing - the start of the US dollar sell-off. For example, short selling of the greenback against some currencies, such as the Norwegian krone, is now more profitable. In addition, Goldman Sachs suggests that the recent initiative of Germany and France to allocate 500 billion euros to support the pan-European economy will have a positive impact on the recovery of the European Union as well as support the euro. Therefore, it is time for investors to leave the shores of the safe dollar harbor and head for the higher-risk shores.
