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The dollar could continue to trade like a ‘risky’ currency, Goldman Sachs warns - MarketWatch

1. The dollar's correlation with stocks has reversed, indicating potential risk. 2. Goldman Sachs believes the dollar may act like a risky currency again. 3. Hedging against dollar exposure has increased, adding downward pressure. 4. DXY experienced its worst first half since 1973, dropping over 10%. 5. Despite recent gains, uncertainty around trade policies persists.

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FAQ

Why Bearish?

The ongoing hedging activities and trade uncertainties indicate further weakness for the dollar.

How important is it?

The shifts in correlations and investor behavior are crucial for DXY's performance.

Why Short Term?

The looming August 1 trade deadline could create immediate volatility impacting DXY.

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