Investors should sell the dollar, as chances grow for a decisive win by Democrat Joe Biden at next month's election and as progress continues towards an effective vaccine against COVID-19, Goldman Sachs strategists said on Friday.
Strategists led by Zach Pandl said in a note the two key drivers for the currencies are now the Democrats taking control of both Congress and the Senate in a Biden win on November 3 and progress on a vaccine.
"Although there are uncertainties around both, the risks are skewed toward dollar weakness, and we see relatively low odds of the most dollar-positive outcome-a win by Mr. Trump combined with a meaningful vaccine delay," Goldman said.
Goldman said the chances of a so-called "blue wave" have risen to more than 60%, based on Biden's growing lead over President Donald Trump in the polls.
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well that does not say much for Biden and the Economy
Strategists led by Zach Pandl said in a note the two key drivers for the currencies are now the Democrats taking control of both Congress and the Senate in a Biden win on November 3 and progress on a vaccine.
"Although there are uncertainties around both, the risks are skewed toward dollar weakness, and we see relatively low odds of the most dollar-positive outcome-a win by Mr. Trump combined with a meaningful vaccine delay," Goldman said.
Goldman said the chances of a so-called "blue wave" have risen to more than 60%, based on Biden's growing lead over President Donald Trump in the polls.
Goldman Sachs says sell the dollar due to the increasing odds of a Biden-led blue wave and progress on COVID-19 vaccine
Goldman Sachs said a blue wave US election and favorable news on the vaccine timeline could push the dollar index to 2018 lows.
well that does not say much for Biden and the Economy