Goldman Sachs Morning Market Update: JPY Intervention and Global FX Strategy (August 3, 2026)

Key Takeaways

• 1.Japan has shifted to a 'maximalist' intervention strategy with US coordination to support the Yen.
• 2.Broader USD outlook remains negative following the recent Yen move and potential loss of Fed inflation-fighting credibility.
• 3.Tactical recommendation to buy carry in Latam FX (MXN, BRL) given reduced volatility and exhausted positioning in macro/equities.

Table of Contents

• JPY & Intervention
• FX Options Trading
• Connecting You to GS: Thoughts from The Floor
• Global FX Trader: Policy Pushback
• Week Ahead Previews

Report data

1m $JPY Vol has Bounced off the Lows from 6.0 to 8.8v

Reports in this series

Morning Market Update is shown in chronological order through this edition, published on August 3, 2026.

Part of the Morning Market Update series — view all 4 editions

1. May 21GS MORNING 1) RBA Call Change, 2) FOMC Minutes, 3) HUF Update, 4) FX Trader Call Takeaways and 5) NOK Oil Proposition
2. Jun 16GS MORNING 1) BoJ Recap
3. Jul 10GS MORNING: 1) CPI Preview, 2) Momentum Unwind?, 3) G10 FX Carry Comeback and 4) Views from the Treasury Desk