Wednesday saw Goldman Sachs note that "EM.....>

FOREX: Wednesday saw Goldman Sachs note that "EM currencies have seen sharp

drawdowns since the start of the coronacrisis, especially among the commodity

producing LatAm & CEEMEA. With only a limited recovery since the retracement,

many of these scan as 'severely' undervalued (comparable to the GFC & trough

undervaluation levels). But whereas the risk premium in some of these

currencies, such as MXN & CLP, look attractive medium-term, risks still linger.

So for now we recommend EM FX longs on a relative basis (MXN vs COP) recognising

that funding MXN longs out of USD/EUR may be apt for investors willing to look

through short-run volatility. In CEEMEA, fundamental B/S considerations lead us

to prefer Russian local assets over Turkey, and we would look for some

indications of oil price stability to activate views there. Asian FX has

generally been more resilient, so the risk-reward for outright USD longs looks

better against the Asian complex, especially as a hedge against the re-emergence

of China-centric risks. Elsewhere in the region, we have stuck to relative value

expressions (e.g., KRW versus THB) reflecting the likelihood of an earlier

recovery in cyclical manufacturing relative to tourism and transport."