Free Trial
USD

USDSEK new all time record high

EURUSD TECHS

Downtrend Resumed

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Goldman: Still A Hard Bar To Beat

USD

Goldman Sachs note that “the FOMC made an important policy change by modifying its policy guidance and broadening the criteria for slowing the pace of future rate hikes to more explicitly include the activity outlook. This was both natural and necessary at some point, and should mean a notable shift for how the market prices the reaction function into the autumn. The market correctly assessed this as a dovish outcome under the current circumstances, in our view. But the decision has to be viewed in conjunction with the latest wage and inflation data, which will make it difficult for the market to push too hard on the dovish narrative. Overall, we expect that the broader FOMC criteria will make for a less disruptive Dollar rally (and some relief to EM currencies after a tough couple of months), but not enough to turn the tide on the greenback. Fed tightening will still make the Dollar a hard bar to beat, especially with rising recession risks in Europe.”

166 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Goldman Sachs note that “the FOMC made an important policy change by modifying its policy guidance and broadening the criteria for slowing the pace of future rate hikes to more explicitly include the activity outlook. This was both natural and necessary at some point, and should mean a notable shift for how the market prices the reaction function into the autumn. The market correctly assessed this as a dovish outcome under the current circumstances, in our view. But the decision has to be viewed in conjunction with the latest wage and inflation data, which will make it difficult for the market to push too hard on the dovish narrative. Overall, we expect that the broader FOMC criteria will make for a less disruptive Dollar rally (and some relief to EM currencies after a tough couple of months), but not enough to turn the tide on the greenback. Fed tightening will still make the Dollar a hard bar to beat, especially with rising recession risks in Europe.”