Goldman Sachs, in a new note to investors shared with Bloomberg, forecasts a gradual weakening of the dollar following the Fed's recent 50 basis point interest rate cut, which has diminished the dollar's appeal. The bank expects the euro and pound to strengthen against the dollar, predicting EUR/USD to rise to $1.15 and GBP/USD to $1.40. Goldman attributes the dollar's expected weakness to the Fed’s willingness to aggressively counter a potential economic downturn, though it notes the process will be slow and uneven. In contrast, Deutsche Bank holds a different view, arguing that a potential Trump presidency could boost the dollar, as the market is underpricing the dollar-positive risks tied to his possible election. Source: The Daily Hodl
