Goldman revised down EUR/USD forecast
Goldman Sachs revised down its 3-, 6- and 12-months EUR/USD forecasts from 1.38, 1.40 and 1.40 previously to 1.38, 1.34 and 1.30.
The main reason for forecast revision is the change in the US economic outlook. Goldman expects the US growth to pick up in the coming quarters, what will ultimately weigh on EUR/USD. The bank doesn't see the last week's dovish ECB press conference as a game changer.
"We distinguish between the short and medium term. In the short term we do not see last week's press conference as signaling imminent action, but rather as a conditional commitment to ease further should inflation disappoint. In the medium term (by which we mean the mid-2014), further ECB remains possible, depending on the data".