Dollar Beginning to Appreciate 'A Bit,' Goldman Says
Speakers
Kamakshya Trivedi
— Head of Global FX and Interest Rates, Goldman Sachs
Summary
Goldman Sachs strategist Kamakshya Trivedi discusses how the Middle East conflict is affecting commodities and the dollar. He observes that the dollar is beginning to appreciate as rising European gas and oil prices feed through, overcoming earlier market reluctance tied to de-escalation hopes. Terms-of-trade shifts between oil exporters and importers are starting to influence currencies.
- Middle East conflict continues to escalate with no clear de-escalation.
- Dollar response was initially muted due to lingering de-escalation expectations and residual terms-of-trade effects.
- Rising European gas and oil prices are now pushing the dollar to appreciate.
- Dollar is acquiring a 'front-footed nature' as energy-driven terms-of-trade distinctions start to play out.
- The strategist highlights a shift from reluctance to commitment in pricing energy price increases into FX markets.
Ideas
Dollar strengthening on rising energy prices.
Rising European gas prices and oil prices are now feeding through to the US dollar, giving it a 'front-footed nature' as terms-of-trade distinctions between oil exporters and importers begin to play out. Initially muted because markets expected de-escalation and prior terms-of-trade effects had not fully faded, but that reluctance is fading, and the dollar is starting to appreciate.
Up Next
This Bloomberg Markets video, published July 24, 2026, features Kamakshya Trivedi discussing DXY. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Kamakshya Trivedi · Tickers: DXY