Investors' long-dollar positions against the euro, the sterling and the yuan just saw a major shift. Photo: Reuters, .Jason Lee

Bloomberg quoted a client note from Goldman Sachs economist Zach Pandl on Wednesday:

“In recent years we have generally maintained a bullish dollar view, and the greenback still has a number of things going for it, including a healthy domestic economy, an active central bank, and lower political uncertainty compared with the U.K. and euro area … “However, a number of fundamentals have changed on the margin, such that the long-dollar story no longer warrants a place among our ‘Top Trades.”’

Bloomberg cites Trump’s calls for a weak dollar, along with the Federal Reserve’s dovish sentiments, as contributing to the Bank’s shifting position.

The note, however, adds that “we have not changed our view that an acceleration in U.S. inflation will ultimately be seen, reflecting a closing output gap and still accommodative monetary and financial conditions, we would stay on the sidelines for now on the back of the increase in uncertainty over the macro and risk outlook.”