Forex News

Dollar bears to remain on sidelines until U.S. economy runs out of steam: Goldman

2023.06.05 17:15


© Reuters.

Investing.com — The dollar was little changed Monday after snapping a three-week win streak last week, but a surprisingly strong U.S. economy suggests it is too early to bet the bears may soon resume their grip on the greenback, Goldman Sachs said.

The , which measures the greenback against a trade-weighted basket of six major currencies, was flat at 103.96.

The trend of a stronger U.S. economy and a weakness in Europe and China continues to be positive for the dollar in the near term, according to Goldman Sachs. This pattern will have to “abate before medium-term shallow dollar depreciation can come back into view,” it added.

The remarks arrived just after the U.S. economy produced a blowout monthly jobs report, released Friday, in keeping with a trend seen over the better part of a year, Goldman Sachs says, showing that “hard data have been consistently stronger than expected in the U.S. while soft survey data have generally been weaker than expected.” 

The strong data hasn’t gone unnoticed at the Federal Reserve, meanwhile, where Fed officials have had to acknowledge the resilience of the economy by shifting language to a “skip” rather than a pause of rate hikes. 

About 75% of traders expect the Fed to skip rate hikes at its next meeting later this month with about 50% expecting the central bank to resume rate hikes in July, according to Investing.com’s

Some on Wall Street, however, believe that a skip in June paves the way for an extended pause for the rest of the year.

“We expect the Chair’s [Jerome Powell’s] press conference to be heavily focused on communicating that the Fed will be on hold for an extended period of time,” Morgan Stanley said in a Monday note.

If the Fed, however, does stick with skipping that would support investor sentiment on risk assets and could threaten the safe-haven dollar, but “we suspect that downside will continue to be shallow and limited by U.S. macro performance,”   Goldman Sachs said.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 68,885.46 0.08%
ethereum
Ethereum (ETH) $ 2,445.30 1.22%
tether
Tether (USDT) $ 1.00 0.12%
bnb
BNB (BNB) $ 560.34 0.17%
solana
Solana (SOL) $ 163.66 0.21%
usd-coin
USDC (USDC) $ 1.00 0.05%
xrp
XRP (XRP) $ 0.508461 0.43%
dogecoin
Dogecoin (DOGE) $ 0.169983 8.12%
staked-ether
Lido Staked Ether (STETH) $ 2,443.86 1.21%
tron
TRON (TRX) $ 0.161793 2.10%
cardano
Cardano (ADA) $ 0.33197 0.41%
the-open-network
Toncoin (TON) $ 4.60 4.89%
shiba-inu
Shiba Inu (SHIB) $ 0.000018 4.75%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,892.78 1.01%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,851.45 0.01%
avalanche-2
Avalanche (AVAX) $ 23.42 1.00%
weth
WETH (WETH) $ 2,444.49 1.23%
bitcoin-cash
Bitcoin Cash (BCH) $ 339.62 0.08%
chainlink
Chainlink (LINK) $ 10.62 0.13%
leo-token
LEO Token (LEO) $ 6.08 1.44%
usds
USDS (USDS) $ 0.995688 0.16%
sui
Sui (SUI) $ 1.95 2.73%
polkadot
Polkadot (DOT) $ 3.85 1.13%
litecoin
Litecoin (LTC) $ 65.83 1.52%
near
NEAR Protocol (NEAR) $ 3.76 2.26%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,571.68 1.19%
aptos
Aptos (APT) $ 8.32 0.66%
uniswap
Uniswap (UNI) $ 7.06 1.72%
pepe
Pepe (PEPE) $ 0.000008 0.16%
internet-computer
Internet Computer (ICP) $ 7.19 0.84%
dai
Dai (DAI) $ 1.00 0.02%
bittensor
Bittensor (TAO) $ 432.65 0.90%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.19 4.10%
monero
Monero (XMR) $ 159.68 0.93%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.12%
stellar
Stellar (XLM) $ 0.092329 0.53%
whitebit
WhiteBIT Coin (WBT) $ 18.95 0.15%
ethereum-classic
Ethereum Classic (ETC) $ 18.03 0.70%
kaspa
Kaspa (KAS) $ 0.105947 1.19%
first-digital-usd
First Digital USD (FDUSD) $ 0.999859 0.11%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.300463 0.68%
blockstack
Stacks (STX) $ 1.52 2.60%
okb
OKB (OKB) $ 37.53 0.47%
dogwifcoin
dogwifhat (WIF) $ 2.08 0.82%
filecoin
Filecoin (FIL) $ 3.34 1.48%
aave
Aave (AAVE) $ 131.25 0.32%
crypto-com-chain
Cronos (CRO) $ 0.072147 0.22%
arbitrum
Arbitrum (ARB) $ 0.48426 0.36%
mantle
Mantle (MNT) $ 0.56069 1.26%
immutable-x
Immutable (IMX) $ 1.08 0.24%