JPY: 3 relative-value trades we like – Goldman Sachs | Forexlive

Goldman Sachs highlights three JPY relative-value trades.

“For investors that have high conviction on the path of rates, the JPY tends to be the best vehicle of expression—though
tactical risks include a potential surprise from the BoJ and greater
interest in debt limit hedges as the deadline looks increasingly likely
to get pulled forward. Second, for investors that instead have
high conviction on more resilience in equities and flattish rates, long
EUR/JPY looks particularly attractive,” GS notes.

“For investors most bearish on equities on the view that
stocks need to catch down to rates, short AUD/JPY and short CAD/JPY
should be near the top of the list,” GS adds.

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