Skip to content
Subscriber Only

Goldman Axes Short Dollar Call as U.S. Yields Spoil Bet

  • Firm recommends closing USD shorts versus commodity currencies
  • Opportunities to sell dollar may re-emerge as Europe recovers
Goldman Follows Rivals In Setting Net-Zero Emissions Targets
Photographer: Michael Nagle/Bloomberg
Updated on

Almost six months after Goldman Sachs Group Inc. recommended shorting the dollar, it’s calling it quits on the trade.

In a note titled “tactical retreat,” Goldman’s currency team closed its recommended short greenback position against a basket of Group-of-10 commodity currencies, including the Australian and New Zealand dollars. The firm joins hedge funds and other investors capitulating on bearish dollar bets after surging Treasury yields triggered a rebound in the U.S. currency, capsizing one of the world’s most crowded macro trades.