Goldman Sachs Research discusses its Fed rate outlook.

"We continue to expect a second 25bp rate hike in December and are adding a third 25bp hike to our forecast in March 2027. A third hike could come earlier in January, but we think March is a bit more likely because we expect the November and December inflation reports to be softer but then expect larger start-of-the-year price increases amidst ongoing cost pressures to boost inflation in January," GS notes.

"We have left our forecast for the eventual terminal fed funds rate unchanged at 3.25-3.5%, but we now expect rate cuts to begin one quarter later in December 2027 (vs. September 2027 previously), followed by additional cuts in March, June, and September 2028," GS adds.

GS targets EUR/USD at 1.14 by year-end.