Goldman Sachs predicts that the US dollar will depreciate by 2-3% in the next 12 months

The Goldman Sachs strategy team stated that although the dollar will fall this year, it is still overvalued by about 14-15% on a real trade-weighted basis, which is about 5-6 percentage points lower than the peak level in the fall of 2022. They predict that the dollar will depreciate by 2-3% within the next 12 months. The Goldman Sachs strategists said: "We will still enter 2024 with a relatively strong dollar. Considering the global macro background, including significant inflation fallback and strong growth, non-recessionary rate cuts by the Federal Reserve, and active stock risk sentiment, we expect that the strength of the dollar will continue to weaken but at a relatively slow pace."