Goldman Sachs said that while the effects of Japanese yen intervention appear to be fading, relative value carry strategies should continue to thrive. U.S. interventions, though small, show a clear revealed preference for supporting other assets, raising questions about even more extreme measures at the dollar’s expense. Carry is on track for its best year since 2010, with notable resilience despite recent yen interventions and Treasury buyback announcements. Europe will also be closely watched for renewed geopolitical tensions and energy price spikes, as EUR/USD has partially unwound last week’s sharp rise.
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