24 Dec 2015
Dollar-strength to continue, but scaling back euro downside – Goldman Sachs
FXStreet (Delhi) – Research Team at Goldman Sachs, expects further US dollar strength as the US economy moves towards full employment and inflation moves back towards the Fed’s target.
Key Quotes
“The resilience of the US economy in the face of dollar strength so far gives us confidence the Fed will tolerate further US$ strength. Against this, the dovish policy stance of the ECB and BoJ – and the distance they find themselves from their policy objectives – will likely see the EUR and JPY weaker vs the US$ in 2016. However, we have scaled back our expectation for EUR downside in the wake of the December ECB meeting.”
Key Quotes
“The resilience of the US economy in the face of dollar strength so far gives us confidence the Fed will tolerate further US$ strength. Against this, the dovish policy stance of the ECB and BoJ – and the distance they find themselves from their policy objectives – will likely see the EUR and JPY weaker vs the US$ in 2016. However, we have scaled back our expectation for EUR downside in the wake of the December ECB meeting.”