Goldman Sachs forecasts sustained USD gains as elevated energy prices keep global yields high amid inflation concerns.
Goldman Sachs expects broad dollar strength to persist as energy shocks maintain upward pressure on global yields. The bank cites rising inflation expectations and geopolitical risks as key drivers for the greenback’s resilience against major currencies.
Recent data shows inflation fears mounting, with break-even rates hitting multiyear highs. The Reserve Bank of New Zealand’s survey revealed rising inflation expectations, while a hot US CPI print fueled speculation of further Fed rate hikes.
The PBOC set the USD/CNY reference rate at 6.8431, above estimates of 6.7946, signaling potential yuan weakness. Goldman Sachs also revised its yuan forecast to 6.50 in a year, citing a 20% undervaluation.