Back
5 Jul 2013
Flash: USD/JPY forecast revised higher – Goldman Sachs
FXstreet.com (New York) - “With six months of substantial market shifts behind us, we conduct a midyear review of our views and the market opportunities we see for the second half – our recommendations relied heavily on the notion that the US recovery would become more visible, pushing both US stocks and US yields higher.” Notes the Economics Research Team at Goldman Sachs.
On the whole, the first half of the year has seen versions of these themes play out. However, in many cases, the economic forces and market shifts have played out more rapidly and dramatically than our initial forecasts envisaged.
“Our US GDP forecast is little changed, but the housing market has improved somewhat faster than expectations, and we now see US equities and yields ending 2013 higher than we forecast six months ago. We have a more negative view of Chinese and EM growth, and related assets. And our views on Japanese growth, inflation, equities and USD/JPY have been revised higher since the start of the year.” the team adds.
On the whole, the first half of the year has seen versions of these themes play out. However, in many cases, the economic forces and market shifts have played out more rapidly and dramatically than our initial forecasts envisaged.
“Our US GDP forecast is little changed, but the housing market has improved somewhat faster than expectations, and we now see US equities and yields ending 2013 higher than we forecast six months ago. We have a more negative view of Chinese and EM growth, and related assets. And our views on Japanese growth, inflation, equities and USD/JPY have been revised higher since the start of the year.” the team adds.