Reminder - Goldman Sachs expects the US dollar has further to fall ...Middle East

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Reminder - Goldman Sachs expects the US dollar has further to fall

Goldman Sachs chief economist Jan Hatzius in a note late last week, htat he is not confident forecasting a level for the dollar:

“I often dodge questions about the dollar. A large body of academic literature and my own experience as an economic forecaster have taught me that predicting exchange rates is even harder than predicting growth, inflation, and interest rates.”

But ...

    “I believe that the recent dollar depreciation of 5% on a broad trade-weighted basis has considerably further to go”

    Warns that the dollar continuing to decline will make inflation pressure worse

    but will make US exports relatively cheaper

    The U.S. economic slowdown is further compounding the dollar's woes, and does not see much relative improvement saying that the its not likely that the US economy will outperform.

    This article was written by Eamonn Sheridan at www.forexlive.com.

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