The Fed surprise last week caused growing uncertainty among FX investors and removed one potential catalyst for Dollar strength that the FX consensus had been looking for, says Goldman Sachs. "We now expect tapering to start in December with $10bn. More importantly from an FX point of view, however, is the strengthened forward guidance. Forward 3-month rates on a 2-3 year horizon fell almost twice as much in the US as in many other major markets. The closing gap in the forward interest rate differential has been a clear negative for the Dollar," GS adds. Moreover, GS continues to believe that front-end rates ... (full story)