Goldman Sachs Research discusses the USD outlook.

"A number of reasons have contributed to the Dollar's tough summer with policy volatility being a common factor. First, small but unusual US interventions in the Yen and Treasury markets have shown a clear revealed preference for supporting other assets, even at the cost of Dollar weakness," GS notes.

Second, beyond that signal, and each individual action, this greater willingness to resort to unconventional choices raises questions about whether other even more extreme choices that come at the expense of the Dollar could be considered, especially if other harder choices on fiscal and monetary tightening are avoided.

And third, the opacity of the Fed reaction function, against a backdrop where inflation data has been a touch more quiescent, has added to near-term pressures on the Dollar," GS adds.