Goldman Sachs has projected that the US dollar is poised for a period of strengthening before signs of economic recovery emerge in either Europe or Asia. This outlook is attributed to the resilient US economy and the hawkish stance of the Federal Reserve.
According to analysis by Goldman Sachs analyst Kamakshya Trivedi, the current market dynamics are primarily influenced by the robustness of the US economy and the challenges facing Asian economic growth. Presently, both of these factors seem to favor further strengthening of the US dollar.
Federal Reserve Chairman Jerome Powell is expected to reiterate the central bank‘s resolve to tackle inflation in his speech at Jackson Hole this week. This commitment to controlling inflation is likely to provide ongoing support for the US dollar.
Consequently, reversing the current trend of the strengthening dollar will likely necessitate an economic revival in Asia and Europe.
