Goldman Sachs notes that "as risk......>

MEXICAN PESO: Goldman Sachs notes that "as risk sentiment wobbled last week,

high-"beta" EM currencies did, too, and the Peso - one of the highest-"beta"

currencies in EM - was no exception. As a result of this pullback, we closed our

recommendation to be long MXN versus ILS, after previously extending targets and

tightening stops, for a potential profit of 7.5% (including carry). While the

Peso has appreciated significantly versus the Dollar since late March and

remains a heavily positioned "consensus long" among EM FX investors, we think

there is still significant further upside. In particular, with an increasingly

hard to find combination of high real carry and undervaluation among EM

currencies, macro fundamentals are still currency-supportive in Mexico,

notwithstanding still high case counts of confirmed coronavirus. Most

importantly, any broad Dollar weakness is likely to include Peso strength, and

with USD/MXN still nearly 20% above mid-February levels of around 19, the

risk-reward of short USD/MXN positions appears to be increasingly attractive,

and we will be looking to re-engage again with this view."