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Forex•13 May 2026•

1 min read

Goldman Sachs Sees Sustained Dollar Strength Driven by Energy Shock and Yields

Key Facts

1Goldman Sachs expects the energy price shock to keep US yields elevated and drive broad dollar strength across G10 currencies.

2The bank's preferred positions include long dollar against the Swedish krona, euro, and British pound.

3Analysts noted that the US position as the world's largest oil producer provides further insulation from energy shocks.

According to reports from Goldman Sachs strategists, the ongoing energy price shock is expected to keep US Treasury yields elevated, driving broad strength for the US dollar against G10 currencies. The bank favors long dollar positions against the euro, British pound, and Swedish krona, noting that the US position as the world's largest oil producer provides a unique buffer against energy-related volatility compared to its peers.

These forecasts arrive as market data reveals diverging global economic performance; for instance, Services PMI in Spain and Italy fell to 47.9 and 49.8 respectively on May 6, 2026, missing estimates per market data. Conversely, US ADP employment data showed an addition of 109,000 jobs, beating the 99,000 forecast, which supports the narrative of US economic resilience highlighted by Goldman Sachs.

Looking ahead, traders are monitoring a series of speeches from Federal Reserve officials, including Kashkari and Goolsbee, for clues on the interest rate trajectory. Key focus remains on US Initial Jobless Claims scheduled for May 7, 2026, which recently printed at 200,000, as these labor market indicators will be crucial in determining if the dollar can sustain its current upward momentum.