Goldman Sachs do not see a case for sustained USD appreciation

Goldman Sachs have had, and continue to have, a core bearish view on the USD.

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• "From its October 2013 low to the end of 2013 the trade-weighted Dollar appreciated 1.5%. Based on these guideposts, we would see roughly 1.5-3.0% additional near-term upside risk to the broad Dollar, assuming US activity data remains firm and markets continue to reprice Fed expectations in a hawkish direction."
• "However, despite the hawkish June FOMC meeting, we do not see a case for sustained Dollar appreciation. Most importantly, our own Fed expectations are more dovish than current market pricing: our economists forecast one rate hike by end-2023 compared to the roughly three currently priced in."