Goldman Sachs: five reasons in favor of the euro against the dollar

Currency strategists at Goldman Sachs put the strengthening of the euro against the U.S. dollar, especially after the recent reduction of the single European currency. As evidence of this forecast with the bank the following reasons. First, it is the restoration of expectations for global economic growth, which leads to a decrease in demand for U.S. dollar as a currency of refuge. Secondly, the rise in commodity prices, which typically involves the inverse dynamics of the dollar. And thirdly, the restoration of U.S. economy and domestic demand will probably not be so rapid. And fourthly, the ECB has demonstrated great determination. And finally, fifthly, the continuous talk of the SDR (special drawing rights) as a new synthetic reserve currency undermined the credibility of the U.S. dollar.