Goldman Sachs expects the Federal Reserve to hike rates 4 times in 2018

But say that does not necessarily mean USD strength

GS cite

  • the previous rate hike cycle in the US (mid-2004 to mid-2006) ... trade-weighted USD fell (around 7%)
  • non-U.S. factors supported other currencies

GS suggest that cycle may be a "good template" for the USD performance in the current

More:

Biggest risks are:

  • tax overhaul ... risk of failure
  • aggressive US trade & foreign policy

GS say domestic & global influences favor EUR relative to JPY ... EUR appears undervalued, under-owned

  • euro area above-trend growth, reduced political risk
  • BOJ to hold JPY closely correlated with global bond yields

on GBP

  • continued downside risks on Brexit deadlines & UK