From Business Insider:
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.
"In our view, a "blue wave" US election and favorable news on the vaccine timeline could return the trade-weighted dollar and dollar index to their 2018 lows," the bank said.
My enemy's enemy, et cetera et cetera
Goldman Sachs says sell the dollar due to the increasing odds of a Biden-led blue wave and progress on COVID-19 vaccine [Saloni Sardana / Business Insider]
Goldman Sachs bets against the dollar on 'blue wave' prospects and vaccine outlook [Elliot Smith / CNBC]
Image: G. Villamil for Financial Times / Flickr (CC 2.0)