Goldman Sachs: Key Themes in updated FX forecasts ...Middle East

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Goldman Sachs: Key Themes in updated FX forecasts
Key Themes:Revisions in Rate-Sensitive Currencies:Goldman Sachs has made significant revisions in forecasts for currencies sensitive to interest rate changes, notably JPY, SEK, and IDR.These adjustments primarily reflect the observed shifts in these currencies over recent months, moving away from a "higher for longer" rates scenario.Potential in Pro-Cyclical Currencies:The firm identifies substantial potential in pro-cyclical currencies, such as KRW, ZAR, AUD, NZD, and GBP.These currencies are expected to benefit from the Federal Reserve's easing of financial conditions, contributing to the likelihood of a global economic soft landing.Moderate Returns in Key Challenger Currencies:Despite the

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