Japan's New Opposition Should Be Good for the Yen, Goldman Says

While 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, according to Goldman Sachs Group Inc.

"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," Goldman analysts Zach Pandl and Kamakshya Trivedi wrote in a note dated Oct. 2. "Hope" refers to Koike’s Party of Hope, which is gaining interest in the run-up to the Oct. 22 general election.