FOMC: More hawkish expectations a headwind for short US dollar – Goldman Sachs

Dhwani Mehta FXStreet

Amidst the US Federal Reserve’s (Fed) hawkish turn on the monetary policy, analysts at Goldman Sachs continue to predict a weaker US dollar going forward.

Key quotes

“Forecast a weakening for the USD, citing that its valuation is high and ongoing global economic recovery.”

“More hawkish Fed expectations and the ongoing tapering debate look likely to be a headwind to dollar shorts over the near term.”

“Put down long EUR/USD trade recommendation after the FOMC.”

Read: Federal Reserve ups the ante on inflation, growth and interest rates

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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