News headline: Goldman Capitulation on Dollar Shows Reversal on U.S.
Maybe it’s just me, but something about large investment banks betting on the decline of the home currency - any currency, really, but especially the home currency - rubs me the wrong way. I’m talking about speculation, here, and not mere currency hedging. Think George Soros and the pound. In my mind, with a firm as large as Goldman Sachs, currency speculation raises the spectre of currency manipulation for political purposes. Just a thought.
Although I guess it’s reassuring (maybe) to know that Goldman and Citi think the dollar is a good bet now.