US dollar to rise 14 percent in 2017 – Goldman Sachs

By FXStreet FXStreet (Delhi) – Research Team at Goldman Sachs, suggests that the normalization of US monetary policy will result in a substantially stronger Dollar and we forecast the greenback to rise 14 percent through 2017.

Key Quotes

“The Fed is worried about this scenario, to say the least, which might be one reason why Chair Yellen has begun to sound like an FX strategist in her press conferences.”

“Dollar strength is a deflationary impulse that will slow the pace of Fed hikes down the road. Better to now “hike and like” and rely on this transmission channel, rather than unsettle markets with an implicit focus on financial conditions, causing a “riskoff” with renewed worries over the Fed’s reaction function.”
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Source:: FX Street