Late Wednesday saw Goldman Sachs note that....>

FOREX: Late Wednesday saw Goldman Sachs note that "while EUR-funded EM FX has

been an attractive trade over most of the past two years, the case for Euro (vs.

Dollar) funding has faded over time: (i) EUR funding could limit gains in a

global cyclical recovery and equity rally, as it did in 2017, (ii) the relative

carry advantage of EUR funding has fallen, and (iii) the case for US vs Euro

area outperformance now appears less clear. While the case is growing for Dollar

shorts. In our view, investors should consider shifting from Euro to Dollar

funding for the more positive macro stories in EM FX, conditional on the

continued success of the global reopening. Short USD/CEE provides a

higher-octane exposure to the Euro area recovery, and we have recommended going

short USD/PLN; a short USD/MXN view offers both significant room to retrace YTD

losses and a high "beta" to an equity rally, and we think RUB longs offer decent

risk-reward vs USD."