Goldman Sees Dollar Weakness as Global Economy Recovers

The transcript discusses the economic outlook, focusing on the correlation between risk appetite and dollar depreciation. It highlights the euro's evolving role in the market, particularly as a funding currency, and examines the impact of economic policies on euro appreciation. The discussion also includes future projections for the euro-dollar exchange rate, considering investor behavior and market trends.

What is the expected impact of a recovering global economy on the US dollar?

• Fluctuating dollar value

• No impact on the dollar

• Weakening of the dollar

• Strengthening of the dollar

How was the euro used during the pandemic according to the discussion?

• As a funding currency for exposure elsewhere

• As a primary investment currency

• As a safe haven currency

• As a speculative currency

What has changed in the market regarding the euro's role as a funding currency?

• The euro is now a safe haven currency

• The euro is no longer a natural funding currency

• The yield difference between the US dollar and the euro has increased

• The euro is now a primary investment currency

What is one reason for the euro's potential appreciation?

• Decreasing policy efforts in Europe

• The euro's cheap valuation and Recovery Fund

• High unemployment rates in the euro area

• Increasing tail risks in the euro area

What macroeconomic factor is contributing to the euro's strength over the dollar?

• Increased fiscal transfers in the US

• Higher interest rates in the US

• Better control of the virus in the euro area

• Higher inflation rates in the euro area

What is the expected trend for the euro's appreciation according to the forecast?

• Rapid appreciation

• Gradual appreciation

• No appreciation

• Immediate appreciation

What is the medium-term target for the euro-dollar exchange rate?

• 1.30

• 1.20

• 1.10

• 1.40