Goldman Sachs cuts dollar outlook after Fed's big rate cut

After the Federal Reserve's sharp rate cuts, Goldman Sachs expects the dollar to gradually weaken as yields lose their appeal. Goldman Sachs has instead raised its forecasts for several major currencies, including the euro, pound and yen. "We still believe that the dollar's high valuation will not be eroded quickly or easily, but the bar has been lowered a bit," Goldman Sachs strategists including Kamakshya Trivedi wrote in the report. Based on the latest forecast for the dollar, Goldman Sachs, which has been bullish on the pound since the beginning of the year, now expects the pound to reach 1.40 against the dollar in 12 months, higher than the previously believed 1.32. This is the first time the outlook has reached this level since 2021, and it is also among the highest forecasts on Wall Street. (Jinshi)