Goldman Sachs Predicts Fed Will Raise Rates Again in October

GS stock is already in a strong downtrend: the last close at 938.46 is well below the 20- and 50-day moving averages, and the RSI at 27 is in oversold territory. Goldman Sachs' forecast that the Fed will raise rates in October is a negative catalyst for bank stocks in the short term; the expectation of a rate hike could increase funding costs and the risk of an economic slowdown, putting pressure on GS. However, because the RSI is oversold and much of the decline has been priced in, a volatile course or rebound buying may be seen rather than a sharp sell-off. Nevertheless, current momentum and news flow keep downside risk alive; in the 1-3 day outlook, the downward bias prevails.

Goldman Sachs' forecast that the Fed will hike rates again in October is a negative risk factor for growth stocks in the short term. GOOGL's RSI14 value is 49.4, in neutral territory and below the MACD signal line (1.06 vs 1.68), indicating weakening momentum. The price at 342.85 is below the SMA20 (345.30) but above the SMA50 (339.33); the rate hike expectation could increase downward pressure in this narrow range. However, the news is a forecast, not a finalized decision; therefore, the confidence level should be kept moderate. In the short term, the 339-340 band should be monitored as critical support.

Goldman Sachs' forecast that the Fed will hike rates again in October is a near-term supportive factor for the DXY. The already strong index has risen 0.70% in 24 hours and is in overbought territory with an RSI of 81.8. MACD is positive and the price is trading above the SMA20/SMA50, confirming the current uptrend. The news could strengthen rate hike expectations, boosting dollar demand and supporting upward movement within 1-3 days. However, overbought conditions also bring a risk of a short-term correction, so caution is warranted.

Goldman Sachs' forecast that the Fed will raise interest rates in October could create upward pressure on USDJPY in the short term. The current technical picture also supports this scenario: the price is above the SMA20 and SMA50, and while the RSI at 63 is approaching overbought territory, it has not yet signaled weakness. The MACD is positive and above the signal line, indicating that momentum still favors buyers. However, it should be noted that the move may be limited due to the possibility that the news is already priced in and the RSI limiting upside potential. Nevertheless, the upward trend is dominant in the 1-3 day horizon.