US Dollar Weakens, Canadian Dollar Rallies, and Goldman Sachs Predicts Tempered Decline

The US dollar's strength is undermined by the Federal Reserve's dovish attitude and the publication of the consumer price index. Downward potential is anticipated, with a target at around 98.98/74. The Canadian dollar experiences a significant rally, fueled by negative US dollar sentiment and favorable US economic data. Goldman Sachs expects a tempered decline for the dollar in 2024 due to the resilient US economy and high yields. Shares of exporters outside the US may face headwinds as the dollar's recent pullback gathers pace. The Reserve Bank of Australia's interest rate decision is awaited, while the focus is now on a flurry of U.S. Federal Reserve officials scheduled to speak this week.