Goldman Sees Pound, Yen and Kiwi Most Exposed to Yellen Shock
- Currencies are most likely to gyrate on a Fed surprise
- Global foreign-exchange volatility rises to one-month high
What Will We Hear From Fed's Yellen on Friday?
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Goldman Sachs Group Inc. sees the pound, the yen and the New Zealand dollar as most vulnerable to a potential surprise from Federal Reserve Chair Janet Yellen’s Aug. 26 speech at the annual monetary-policy symposium in Jackson Hole, Wyoming.
The three currencies have been most sensitive to changes in two-year interest-rate differentials between the U.S. and their respective markets during the past three months, according to research by analysts Robin Brooks and Michael Cahill. A move in the differential by 0.1 percentage point in favor of the dollar could push the pound 1.5 percent lower, the research shows.