USD/JPY leans bearish on a likely slowdown in US growth momentum – Goldman Sachs

Analysts at Goldman Sachs recommended going short on USD/JPY via options over a six-month timeframe in their latest client note.

Key quotes

“We see a variety of paths to a Yen recovery-US economic weakness and/or upward pressure on rates in Japan and limited scope for further sustained depreciation.”

“We recommend buying a 6m 115 USD/JPY digital put, at a price of about 9%, to position for a further step-down in US growth momentum over the coming months.”

“We see meaningful downside risks to our 12m USD/JPY forecast of 123, but maintain this projection for now in light of our colleagues relatively upbeat modal forecasts for US equities, US rates, and global commodity prices.”

This news is republished from another source. You can check the original article here

Be the first to comment

Leave a Reply

Your email address will not be published.