Goldman Sachs says more hawkish Fed expectations a 'headwind' for short USD

Goldman Sachs says they are still forecasting a weakening for the USD, citing:

• its valuation is high
• ongoing global economic recovery

But:

• more hawkish Fed expectations and the ongoing tapering debate look likely to be a headwind to dollar shorts over the near term

Goldman's has shut down their long EUR/USD trade recommendation after the FOMC Wednesday. ICYMI - Fed developments:

• ForexLive Americas FX news wrap: Dots deliver a dollar boost

Dotty Fed Chair Powell.