Goldman Sachs: How are we thinking about USD/JPY from here? ...Middle East

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Goldman Sachs: How are we thinking about USD/JPY from here?
Goldman Sachs discusses their outlook for USD/JPY, emphasizing the role of US rates and real rate differentials in determining the pair's future performance.Key Points:Dominance of US Rates:Return to Fundamentals: Goldman Sachs expects USD/JPY to align more closely with fundamentals, particularly US interest rates, following recent dislocations driven by carry trade unwinds.Constructive US Outlook: With a more optimistic baseline for the US economy, Goldman anticipates a gradual upward trend in USD/JPY, supported by their forecasts for higher equities and a weaker Chinese yuan (CNY).Risk of US Recession:Downside Scenario: Goldman notes that if the US were to enter a recession, their rates st

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