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Goldman Sachs reduced its EUR/USD forecast (not much)
As ICYMI, Goldman Sachs expects the US dollar to be “stronger for longer”.
Quoting:
- upward revision of already robust US growth forecasts
- the FOMC will therefore cut rates later and more gradually
- most other developed market economies will begin their rate reduction cycle earlier, with sequential rate cuts
- The US election is expected to limit wallet flows to other jurisdictions as both candidates have proposed more fiscal support and trade restrictions.
GS says:
- “This opens up some policy divergence in our baseline outlook, which leans in the direction of a ‘stronger for longer’ U.S. dollar.”
- “It is important to note that the rate cuts we anticipate are unlikely to be significantly negative for the dollar, as they are not likely to erode the dollar’s position as a relatively strong safe haven currency with strong yield prospects for the dollar. capital.”
EUR/USD forecast
- $1.05 in three months, $1.05 in six months and $1.08 in one year
- starting at $1.08, $1.10 and $1.12 respectively
This article was written by Eamonn Sheridan at www.forexlive.com.
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