Goldman Sachs has forecast a continued decline in the U.S. dollar, attributing this outlook to a slowdown in American economic performance and weakening growth momentum compared to other major economies. The investment bank highlighted that recent economic data, including a cooling labor market and softer consumer spending indicators, suggest the U.S. economy is beginning to lose the strength that previously bolstered the dollar over the past two years. n nAccording to analysts at Goldman Sachs, even if the Federal Reserve remains cautious about cutting interest rates, this stance alone may not prevent the dollar from facing sustained selling pressure in global markets. While the currency has maintained some gains against certain Asian currencies, it has weakened against the euro and the British pound. Investors are increasingly anticipating a shift in capital flows toward regions offering stronger growth prospects and higher returns. n nThe bank noted that rising expectations for a U.S. rate cut by the end of the year are contributing to the dollar’s vulnerability, particularly as monetary policy divergence widens between the Fed and central banks like the European Central Bank and the Bank of England. Further declines in U.S. inflation or weaker-than-expected growth figures in the third quarter could reinforce the downward trajectory of the dollar. n nConversely, a prolonged depreciation of the dollar might support commodity prices, especially gold and other dollar-denominated assets, by making them more attractive to foreign buyers. It could also boost investor appetite for riskier assets. Market participants remain closely focused on upcoming economic indicators and statements from Federal Reserve officials, which could shape the dollar’s path in the remainder of the year. n— news from (المتداول العربي)n
— News Original —nGoldman Sachs expects the dollar to continue declining due to the U.S. economic performancenThe American investment bank “Goldman Sachs” expects the dollar to continue falling in the coming period, attributing this to the slowdown in economic performance in the United States and the decline in growth momentum compared to its peers among major economies. n nThe bank’s experts explained in a recent note that recent economic data, led by the slowdown in labor market indicators and the decline in some consumer spending indicators, reflect the beginning of the U.S. economy losing some of the momentum that supported the strength of the dollar over the past two years. They added that the Fed’s continued hesitation before lowering interest rates will not be enough to prevent the American currency from facing selling pressures in global markets. n nAlthough the dollar still maintains relative gains against some Asian currencies, it is declining against the euro and the British pound, amid expectations that investment flows will gradually shift toward other markets that provide better growth and return opportunities. n nGoldman Sachs analysts pointed out that rising expectations of an interest rate cut in the United States by the end of this year support the likelihood of a further weakening of the dollar, especially as the gap in monetary policies widens between the Fed and other central banks such as the European Central Bank and the Bank of England. n nThe bank adds that any further decline in U.S. inflation indicators or weakness in growth data during the third quarter will enhance the chances of continuing the dollar’s downward path. On the other hand, analysts believe that the dollar’s continued decline could provide significant support to gold prices and commodities priced in the U.S. currency, with the possibility of increasing investors’ appetite for high-risk assets. n nThe dollar remains under close investor scrutiny, with markets awaiting new indicators from economic data or statements from Federal Reserve officials in the coming weeks to determine the direction of the U.S. currency for the remainder of the year.