Goldman Sachs Predicts Weaker Dollar Following Federal Reserve Rate Cut

According to Odaily, Goldman Sachs has forecasted a gradual weakening of the U.S. dollar following a significant interest rate cut by the Federal Reserve. The investment bank has revised its predictions for several major currencies, including the euro, the British pound, and the Japanese yen, in light of the reduced attractiveness of U.S. yields. Goldman Sachs strategists, including Kamakshya Trivedi, noted in a report that while they still believe the dollar's overvaluation will not be quickly or easily eroded, the threshold for such a change has been lowered somewhat. Based on the latest dollar forecast, Goldman Sachs, which has been bullish on the British pound since the beginning of the year, now expects the pound to reach 1.40 against the dollar within 12 months, up from the previous estimate of 1.32. This marks the first time since 2021 that the outlook has reached this level, placing it among the highest forecasts on Wall Street.