GS's currency strategists, commenting on the dollar - the investment bank says it keeps its bearish expectations of the US currency in the medium term.
Citing: "The main reasons for this are the improvement of European growth in the coming quarters and the incentives from China."
State interest rates are high compared to the G-10 arithmetic average. GS says that when the differential drops 80-100 basis points (for 2-year government securities), the euro and pounds will benefit.
I do not know otherwise, but in my opinion 80-100 basis points will take a long time. Everything rests on what you mean by "medium-term".
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