The Goldman Sachs analysts offer an outlook on the Fed’s interest rate policy and the US dollar over the coming months, in the latest overnight note.
“Expect another 50bp of rate cuts.
Not looking for as deep cuts from the FOMC as the market is expecting.
Expect the USD to weaken over the medium-term.
But downside will likely be limited in near term - modest move higher against Asian Emerging Market (EM) currencies and the EUR.
USD still seen as a 'haven' - will limit downside.
Path ahead depends on the relative growth and policy outlook -- and we should get clearer signs on both in the next month or two.”
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