VIEW: Goldman Sachs note that they "have........>

NOK: VIEW: Goldman Sachs note that they "have maintained for some time that it

was too early to look for outright & sustained USD downside given the balance of

cyclical risks. But in light of the steady reopening process, ltd evidence of a

pickup in COVID infection rates, and encouraging policy actions like progress on

the EU Recovery Fund, we now think USD shorts look attractive in some crosses.

Norway appears well-positioned to outperform through the coronavirus shock. Its

demographics & domestic medical infrastructure make it better equipped for the

outbreak than many other countries, and its strong fiscal position puts it at a

distinct advantage. While others are forced to either limit their fiscal policy

support or dramatically increase borrowing - both potential currency -ves -

Norway is able to repatriate funds from investments abroad (has announced that

it will increase daily transactions even further, from NOK2.1bn to NOK2.3bn),

helping support the econ & NOK. Two months ago, we recommended going long

NOK/SEK for these reasons, today we think investors should rotate that position

(with a gain of about 1%) into a USD-directional expression. We recommend going

short USD/NOK targeting 8.75, stop at 10.25."