[text] Goldman Lists Long USD Short EUR and JPY as Top Trade of 2016 | Valuewalk

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Trade: Go long USD against an equally-weighted basket of EUR and JPY at 100, with a spot target of 110 and a stop loss of 95. Thesis: According to Goldman, the divergence between the Fed and both the ECB and BoJ will continue on into 2016 as the ECB considers more easing and the Fed takes a more hawkish tone. The economic recovery in Europe and Japan is struggling to gain traction while US growth is picking up, the labor market is improving, and domestic demand remains robust. Currencies are particularly sensitive to this divergence pressure, and Goldman believes the dollar has further upside.

[text] Goldman Lists Long USD Short EUR and JPY as Top Trade of 2016 | Valuewalk