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Euro Will Fall In A Cyclical Upswing: Why & Where To? - Goldman Sachs
The recent revision higher of Euro area growth and inflation forecasts by both policy makers and private sector economists gives rise to a key question for the market: how should the EUR trade in a Euro area cyclical upswing? In a recent note to clients, Goldman Sachs analyzes this question by comparing the ECB’s current policy mix with the experience of the USD during the post-crisis period of very easy Fed monetary policy. GS' analysis gives us a template for how the EUR can trade during the current cyclical rebound. The following are the key findings in GS' analysis along with its recent EUR/USD forecasts: 1- ... (full story)