Goldman Sachs: We see a mixed outlook for the greenback in 12 months

Goldman Sachs Global Investment Research is out with its revisions to their FX views and forecasts, mainly highlighting its view on the US dollar in months ahead.

Key Quotes:

“We are revising down our forecast for the US Dollar, primarily against the Euro-moving our 12-month EUR forecast to 1.15 from 1.05 previously-and other European currencies.

But we are not yet ready to call for sustained USD weakness. 

Instead, we see a mixed outlook for the greenback.

We see our revised projections as consistent with the prospect of multiple Fed rate hikes next year. 

Broad Dollar could move sideways or even depreciate while the Fed is hiking rates.

Investors should look for relative value opportunities in G10 FX. 

We now expect further downside to USD/CAD.

We continue to see scope for EUR/SEK and EUR/NOK to move meaningfully lower.

We think both AUD and NZD will significantly outperform JPY.”