In a series of notes to clients, Goldman Sachs continues to discuss its recent shift towards a bullish Dollar view against the other G10 currencies. GS' bullish Dollar view is basically a view that US growth will outperform the rest of the G10. That growth view is typically seen through the lens of rate differentials, which offer one perspective on the Dollar. But other factors matter too. The following are GS' explanations for the 4 main drivers of the US Dollar. The interest differential: Exhibit 2 shows the Federal Reserve’s US Dollar index against the majors, plotted against the corresponding interest ... (full story)