USD faces broad selling pressure on Goldman Sachs slowdown forecast

The US dollar index has declined 0.4% to 104.20 as Goldman Sachs strategists project continued USD weakness amid mounting evidence of economic deceleration. The investment bank's analysis highlights that recent non-farm payroll data confirms a broader economic slowdown trend, likely to persist and weigh on dollar strength. This bearish outlook has triggered selling across major USD pairs, with EUR/USD rising to 1.0780 and GBP/USD advancing to 1.2650. The forecast suggests potential Federal Reserve policy adjustments may be necessary to address slowing growth, further undermining dollar support. Technical analysis shows the DXY approaching critical support at 104.00, with a break below potentially accelerating losses toward 103.50. Traders are increasingly positioning for sustained dollar weakness, particularly against safe-haven currencies and those backed by more resilient economic fundamentals.