Goldman Sachs’ analysis highlights the Dollar and Swiss Franc as potential hedges against inflation and geopolitical uncertainties. The firm’s strategists emphasize the strong correlation these currencies have maintained with 10-year real rates, suggesting their potential resilience amidst market fluctuations. The ongoing focus on inflation and geopolitical tensions is expected to keep the Dollar and Swiss Franc in favor compared to the Euro. In light of these developments, Goldman Sachs has adjusted its forecast for the Euro, signaling a bearish outlook. The firm’s foreign exchange strategists have revised their EUR/USD target to 1.05, down from a previous target. This revision underscores their expectation of continued U.S. macroeconomic outperformance, which they believe will constrain any significant depreciation of the Dollar.
Goldman Sachs Flags Dollar, Swiss Franc as Potential Hedges Amidst Inflation, Geopolitical Turmoil
