VIEW: Goldman Sachs note that "the broad.....>

DOLLAR: VIEW: Goldman Sachs note that "the broad Dollar rebounded over the past

week as investors debated the implications of rising COVID infection rates for

the reopening process. Even though market concerns about new infections have

centered on a few US states, the Dollar can still benefit from "second wave"

fears due to its traditional safe haven properties and its role as an

international currency. At the moment we do not see major risks of a second wave

in the US or other large economies, and our economists forecast a relatively

steep rebound in activity over the next few months - indeed, they revised up

their near-term forecasts last week. This should allow for a continued

pro-cyclical rotation across assets and renewed Dollar depreciation. But recent

developments are a good reminder that "bad news" from the US can paradoxically

lift the Dollar if it affects investor risk appetite or raises questions about

the global economic outlook. Investors more concerned about worsening US and/or

global growth should consider skewing USD shorts toward up-in-quality crosses

like JPY and CHF."