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G Sachs Expects USD/JPY to Approach 160 Mark as Mkt Concerns Mount Over JP Future Spending Path
2026-02-09 11:05:15
The overwhelming victory of the Liberal Democratic Party (LDP) in Japan's snap Lower House election clearly shows wide market support for the new government's direction, including increased fiscal spending, Goldman Sachs issued a research report saying.

The greater mandate for governance is likely to heighten market concerns about the future spending plan path, leading to a new round of weakening in Japanese government bonds and the JPY, unless the Bank of Japan (BOJ) shifts to a faster pace of rate hikes. Therefore, the broker believed that the fiscal impact has not yet been fully reflected in the market.

Goldman Sachs expected the USD/JPY to approach or even surpass the 160 level as the market will gradually absorb the full impact of the election results and Prime Minister Sanae Takaichi's mandate.
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AASTOCKS Financial News
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