GS Morning Market Update

This daily update covers the secular debate on US Dollar hegemony, tactical bullishness on USD against G10 FX, and market updates on Brazilian rates and Indonesian monetary policy.

Key Takeaways

• 1.The US Dollar maintains its dominance despite growing secular trends toward fragmentation, as there is currently no viable substitute that combines market depth and return profile.
• 2.GS advises holding USD long positions against low-yielding G10 currencies (EUR, CHF, CAD) fueled by 'U.S. exceptionalism', strong data, and AI outperformance.
• 3.Brazilian rates (DIs) face significant selling pressure with the curve pricing in rate hikes; the market lacks an anchor as the previous cutting cycle is abandoned.

Table of Contents

• 1) De-Dollarisation Webcast: Key Takeaways
• 2) GS Weekend Macro Call
• 3) BRL Updates
• 4) IDR Updates
• 5) SPX/Rates

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