'Summer Wall-Climbing' - Goldman Traders See Markets Shaken, But Not Stirred

Authored by Dominic Wilson and Kamakshya Trivedi, Goldman Sachs,

1. Summer wall-climbing. 

We argued that as the distribution of risks around tariffs compressed, the avoidance of bad outcomes would create a “narrow path” higher for carry and risk assets and a wider one for continued USD weakness and curve steepening. These trends remain intact, helped by reassuring news flow: