Goldman Sachs raised its estimations about euro / dollar after there started sales on the dollar. Goldman Sachs revised its 12-month Euro / Dollar estimation from 1.05 to 1.15 level. The strategists of Goldman, Zach Pandi and Kamakshya Trivedi explained in a statement that they do not expect any change in the factors causing this weakness in the US dollar, which has been performing poorly until this time of year. The euro has reached the level of $ 1.19 against dollar for the first time since the last week of 2015.
In the report, it was noted that the US dollar weakness was limited progress in pro-growth fiscal policy measures of the United States, expected inflation and salary growth, and uncertainty in Federal Reserve (Fed) chairman change. In addition, positive news in the Eurozone seems to likely continue while many other developed and emerging markets have been accelerating properly.
Goldman Sachs showed three reasons why it would be unlikely to extend the losses of the dollar. These reasons are: over 50 percent of the tax reform to be made in 2018; the economy is close to full employment; and equity capital flows to Europe may not run at the same pace.