This summary is via the folks at eFX.
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Key Takeaways
1. Shallow and Subdued Dollar Depreciation: • Despite recent movements in the market, Goldman Sachs maintains that the overall depreciation of the Dollar over the course of the year is likely to be shallow and subdued. They also anticipate more market fluctuations ahead.
2. Less Divergent Outlook Across Dollar Index: • According to Goldman Sachs, the outlook for a significant portion of the broad Dollar index is not highly divergent. They note that policymakers in much of the Emerging Markets (EM) are already responding to lower inflation, and they expect the Euro area to follow suit soon.
3. Isolated Movement of US Rates: • Goldman Sachs observes that the markets traded this week mostly saw US rates moving independently.
