Goldman Sees Clues for Dollar’s Path in Past Fed Surprises
- Unexpected Fed moves in 2013, 2015 cut rallies short
- Dollar near two-month high after Fed’s hawkish pivot last week
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Dollar traders should remember when the Federal Reserve surprised markets in 2013 and 2015 because if history repeats, the current rally could soon reverse.
The September 2013 Fed decision was preceded by a dollar rally to what was then the highest level in three years, buoyed by anticipation that the central bank would announce a tapering of its bond purchases. Those gains were erased when policy makers unexpectedly refrained from scaling back its stimulus.