The US dollar is outperforming all local currencies this month and is now among the top-performing assets of 2024. Copper, gold, and the US dollar are the top most sought-after investments this year as they’re attracting heavy bullish sentiments. Both retail and institutional investors are accumulating the three assets and flocking toward them for profits. On the heels of the price run, leading investment bank Goldman Sachs forecasted the future of the US dollar.
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Goldman Sachs Forecasts the US Dollar’s Prospects For 2024, Remains Bullish on USD
The leading investment bank Goldman Sachs has painted a rosy picture for the US dollar and remains bullish on the currency. According to the latest forecast by Goldman Sachs, the US will remain “stronger for longer” and dominate the markets in 2024.
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The forecast indicates that the US dollar dominance is here to stay and local currencies will only weaken this year. The Pound Sterling, Chinese Yuan, Japanese Yen, and Indian Rupee have all fallen to new lows in 2024. The USD spiked despite growing threats of de-dollarization from developing countries across the globe.
“This opens some policy divergence in our baseline outlook, which leans in the direction of a ‘stronger for longer’ U.S. Dollar,” said a Goldman Sachs analyst. “Importantly for FX, the rate cuts we anticipate are unlikely to be significantly negative for the Dollar because they are unlikely to erode the Dollar’s position as a relatively high carry, safe-haven currency with strong capital return prospects,” read the report.
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The investment bank forecasted that the US dollar would remain on top until the Presidential elections in November. However, the markets might take a new course depending on the outcome of the elections. Both the candidates have proposed different fiscal support and trade restrictions that could change the direction of the US dollar.