US dollar: Do not see a case for sustained appreciation – Goldman Sachs

Analysts at Goldman Sachs do not see a case for sustained US dollar appreciation.

Read: US dollar holds no bars as it hunts down July highs

Key quotes

“We do not see a case for sustained Dollar appreciation.”

“The global economy will benefit from vaccination tailwinds over coming quarters.”

“The US economy should slow as the fiscal impulse turns negative and falling inflation should allow the Fed to remain on hold for a lengthy period (our economists expect an unchanged funds rate until Q3 2023).”

“But for markets to embrace this view we will likely need to see a topping in the latest Covid outbreak and lower US inflation.”