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The Goldman Sachs analysts offer an outlook on the Fed’s interest rate policy and the US dollar over the coming months, in the latest overnight note.

Key Quotes:

“Expect another 50bp of rate cuts.

Not looking for as deep cuts from the FOMC as the market is expecting.

Expect the USD to weaken over the medium-term.

But downside will likely be limited in near term – modest move higher against Asian Emerging Market (EM) currencies and the EUR.

USD still seen as a ‘haven’ – will limit downside.

Path ahead  depends on the relative growth and policy outlook — and we should get clearer signs on both in the next month or two.”