In a note to clients today, Goldman Sachs follows-up on its high-conviction call that the period of indecision for the Dollar from the March FOMC to recent ECB and Fed meetings, has ended and that the path of least resistance for EUR/USD is resuming its underlying bearish trend from here. “The Interlude,” as we call this period, was characterized by a Fed that shifted dovish after sharp Dollar gains in March and a subsequent Bund sell-off that, in our eyes, undercut the credibility of ECB QE. This week’s employment data have made December lift-off all but certain, validating the expectation of our US economics team, ... (full story)