Goldman Sachs has forecasted that the euro could depreciate by as much as 10%—potentially falling below $1—if former President Donald Trump wins the U.S. presidential election on November 5 and enacts widespread tariffs and domestic tax cuts.
In a note issued on Tuesday, Goldman Sachs analyst Michael Cahill outlined a scenario where Trump imposes a 10% global tariff and a 20% levy on Chinese imports. Combined with the economic boost from domestic tax cuts, this could lead to a sharp rally in the U.S. dollar, potentially causing the euro to weaken by 8% to 10%.
As of the latest trading, the euro was valued at $1.083.
