In a note to clients today, Goldman Sachs follows up on its recent bullish USD call admitting that price action has gone 'decidedly' against this call as of late. "Despite an impressive series of positive data surprises – most obviously last Friday’s payrolls – the Dollar has weakened (Exhibit 1). In fact, it has fallen even as the improving data have moved the 2-year rate differential – the tenor that matters most for USD – in favor of the Dollar, albeit slightly (Exhibit 2)," GS clarifies. USD behavior has switched, even very recently, from the 2010-12 norm. USD now instantaneously strengthens on good data, ... (full story)