This via Bloomberg, Goldman Sachs on the Japanese election and the prospects for the yen
- little is yet known about Japan's new national opposition party, any gains in polls for the group led by Tokyo Governor Yuriko Koike should be good for the yen,
- "The bottom line for FX markets is that dollar-yen should tend to be negatively correlated with polling results for Hope, at least until the party's views on monetary policy become clearer"
Yes, the 'Hope' referred to is not in reference to the four-letter word prevalent in the market, but to the name of Koike's Party of Hope
More from GS (beginning with a kiss of death):
- Prime Minister Shinzo Abe is still most likely to win
- Given 'Hope's' change/reset campaign message, "we believe a victory would call into question the sustainability of the BOJ's easy stance, and open the field of candidates" for BOJ chief
Article is here if you'd like to check it out: Japan's New Opposition Should Be Good for the Yen, Goldman Says
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ps. If Koike wins I am so gonna be the first to tweet on the Audacity of Hope
