VIEW: Goldman Sachs are recommending...>

MEXICAN PESO: VIEW: Goldman Sachs are recommending that "investors go long

USD/MXN, indexed to 100, with a total return target of 108 & a stop of 96. MXN

longs are underpinned by (i) one of the most attractive combinations of high

real carry and deep undervaluation in EM FX, (ii) significant room to retrace

back to a pre-coronacrisis level of around 19 for USD/MXN, (iii) an overall mix

of currency-supportive macro fundamentals in Mexico, and, (iv) arguably, a

reduced likelihood that Mexico will resurface as a campaign issue in the US

after official meetings around the recent enactment of the USMCA trade

agreement. While the potential rewards of MXN longs are high, a short USD/MXN

view is also higher-octane than our recommendations to go short the Dollar

versus Euro area satellites, and involves a different mix of risks. Overall,

given the Peso's high beta to both global risk sentiment and the broad Dollar,

the path for MXN will depend, in large part, on the degree to which COVID risks

will be a speedbump, rather than a roadblock, to the ongoing upswing in global

activity."