GS don't like the USD, but says to avoid it due to choppiness
Looks to fund carry trades (long EM) using other currencies instead of USD
- dollar downside we expect will remain choppy
- we prefer EM FX expressions that allow a steady accumulation of carry, have some scope for appreciation if the growth backdrop improves, and are somewhat insulated against a dollar back-up
And:
- On total return basis there has been a much more consistent trend of EMFX outperformance relative to non-U.S. DM currencies since 4Q 2018
- EM FX relative to the USD has been volatile and range-bound
