On February 21st, Goldman Sachs strategists stated that foreign exchange traders underestimated the risk of the Trump administration implementing new tariffs, which will boost the attractiveness of the US dollar and enhance its prospects for further appreciation. In summary, not all tariffs have the same impact on foreign exchange, “Goldman Sachs strategists Karen Reichgott Fishman and Lexi Kanter wrote in a report on Thursday. But given the shrinking risk premium of major cross exchange rates in recent weeks, we once again believe that the tariff risk seems to be underestimated, which makes it more attractive to long the US dollar now
Scan code to share