Goldman Sachs forecasts for USD/JPY:
- 3 months 155 (the prior forecast for 3 months out was 145)
- 6 months 150 (prior 142)
- 12 months 145 (prior 140)
These are from a GS note sent to client on Friday.
GS cite a “benign macro risk environment” for its bearish view on yen. GS analysts also say they don’t expect rate cuts from the Federal Reserve to lift the yen:
- “If anything, the anticipation of adjustment cuts has reduced the probability of the recession risks that tend to activate the yen’s safe-haven appeal.”
Over the past many, many months Goldman Sachs have been a stand out amongst analysts in not expecting a US recession, the firm has consistently had its recession probability forecast well under consensus.
USD/JPY update as of Friday afternoon, US time:
ps. Join in on Monday morning Asia time / Sunday evening US time when Asian markets react to this from Bostic:
This article was originally published by Forexlive.com. Read the original article here.