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Goldman Sachs

Global FX Strategy 2026

LIVE10 January 2026USD bearish
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USD/USD

Bearish USD but the downside is 'different' from typical bear cycles. Dollar wea

Bearish

Key Drivers

Twin deficits
Fed easing asymmetry
Global growth convergence
US structural resilience limits pace

All Firm Targets (Dec '26)

Analysis Summary

Bearish USD but the downside is 'different' from typical bear cycles. Dollar weakness will be selective rather than broad-based - concentrated against EUR, JPY, and commodity FX. Twin deficits, Fed easing asymmetry, and global growth convergence drive the move, but US structural advantages limit the pace of decline.