
Goldman Sachs warns: Demand for financing in US dollars against euros weakens
Goldman Sachs stated that a key indicator measuring global currency demand shows that investors' preference for euro financing is on the rise. In a report, Goldman Sachs' Simon Freycenet and Friedrich Schaper wrote, "For most of the history of the eurozone, investors have been paying a premium to obtain dollar financing in the cross-currency basis swap market. Looking ahead, our analysis suggests that the European Central Bank's policies, along with the savings and investment dynamics across the Atlantic, will lead to an increase in the basis over time, and the premium for dollar borrowing will turn into a discount."
