Zach Pandl

What’s Ahead for the U.S. Dollar?

Zach Pandl, Jake Seward

Goldman Sachs Research abandoned its dollar-short strategy following flat Q1 201 results but identified the euro as a primary appreciation target with a 12-month forecast of 1.28. Co-Head Zach Pandel attributes this bullish European outlook to stabilizing pandemic conditions, accelerating vaccinations, and anticipated adjustments to the European Central Bank's bond purchase program. Simultaneously, the firm projects a long-term decline in the dollar's reserve currency share due to competition from a common European bond market, China's financial opening, and negative impacts from the Biden administration's proposed corporate tax hike.