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Goldman Sachs On Broader EMFX Picture

EMERGING MARKETS
  • While central bank policy and carry remains important, Goldman Sachs think cyclical betas will also play an important role in coming months as it has been the case over the last week. If inflation relief proves to be sustained (and here next week’s US CPI print is the next key signpost) and the market embraces more fully the probability of a soft landing scenario, GS see room for cyclical EM currencies to recoup recent losses.

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