US tariffs are expected to weaken the dollar as GDP growth slows - Goldman Sachs

Reciprocal tariff plans are not fully priced

The desk anticipates that the US dollar's recent weakness against G10 currencies may not fully reflect the potential ramifications of the upcoming reciprocal tariff announcement on April 2nd. Per the full note from MUFG EMEA, Derek Halpenny highlights that market sentiment could be overly optimistic regarding the impact of these tariffs, suggesting that traders should brace for possible volatility. As positioning shifts ahead of this key event, the desk sees a cautious approach as prudent, especially given the lack of high-impact events on the calendar in the near term.

The outlook for the euro and the British pound amid rising US tariffs - Goldman Sachs

Goldman Sachs flags shrinking supply shock in USD outlook, sees delayed dollar weakness - Investing.com Nigeria

The desk interprets Goldman Sachs' analysis of a diminishing supply shock in the USD outlook as indicative of delayed weakness in the dollar. Per the full note [source], with supply concerns easing, traders should be prepared for a more gradual depreciation path for the dollar rather than an immediate decline. This thesis finds resonance amid near-term economic indicators suggesting that shifts in supply chains could mitigate inflationary pressures, allowing for a more stable dollar environment. As we look ahead, the absence of significant catalyzing events in the upcoming weeks provides the backdrop for such a gradual adjustment in dollar value.

Tariff stress likely to weigh on the USD - UBS