GS Macro: Five Things You Need To Know

This report highlights key macro updates, including revised USD targets, drivers of USDKRW volatility, and a positive outlook for the Indian Rupee. It also notes that the KOSPI index is trading at its most attractive valuation level since the Global Financial Crisis.

Key Takeaways

• 1.Goldman Sachs revised 12-month USD targets against EUR and JPY, expecting higher USD due to strong US performance.
• 2.USDKRW strength is driven by significant equity rebalancing outflows and foreign investor FX hedging demand.
• 3.The KOSPI index reached its lowest 12-month forward P/E valuation since the Global Financial Crisis.

Table of Contents

• GS Weekend – thought leader views and weekend macro call
• EURUSD and USDJPY – revising our 12mth targets to 1.12 and 165
• Why has USDKRW been higher?
• Kospi – The 12mth fwd P/E has hit the lowest level since the Global Financial Crisis
• INR – turning more constructive (Short THB/INR and long INR 30Y bonds)

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