The Oracles at Goldman Declare: The Dollar Has Bottomed

Hereinafter, the value of your greenback shall increase in value, says the sages around the harkness table at Goldman.

The dollar is down 6% over the past 6 months, in spite of the fact that both European and Japanese central banks have enacted a negative interest rate policy. If you try to wrap your head around the whole thing, with the Fed in a tightening mode, your head may very well explode.

Just know this now, things are going to get inexorably better for dollar bulls–according to Goldman of course.

“We remain dollar bullish and think the trajectory is higher from here,” Robin Brooks, Goldman Sachs’s New York-based chief currency strategist, said in an interview with Bloomberg Radio. “The reaction on Friday to a meaningfully weaker-than-expected payrolls was telling: We had a disappointing jobs number and the dollar actually bounced.”

Goldman Sachs estimates that the dollar will advance 15 percent during the next two years as U.S. monetary policy normalizes, Brooks said in a report Tuesday. This isn’t the first time the bank has reiterated its dollar-bullish stance in recent months, a view that hasn’t always panned out. Goldman Sachs closed a dollar position against a equally weighted basket of euro and yen in February, one of its top trade recommendations for 2016, with a potential loss of about 5 percent.

That’s right, Brooks is calling for a 15% move in the dollar over the next two years. I am sure he concocted this prophecy while unconscious, under the heavy influence of opiates.