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.
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See Also:
- That Amazingly Tight Correlation Between Stocks And The Dollar
- Morgan Stanley: It's A Good Time For The Dollar To Fall
- Dollar Collapse Plunges S&P 500 Back To 1996
Full story at http://feedproxy.google.com/~r/businessinsider/~3/nMgNBrBr4YA/goldman-calls-for-more-us-dollar-pain-2009-10
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