Goldman Sachs' base case forecasts for the EUR/USD next year is that it will be pushed back towards the upper half of the post-Global Financial Crisis (GFC) trading range, at about 1.40. That, according to GS, puts the EUR/USD at 1.25, 1.33 and 1.40 in 3-, 6- and 12-month respectively. GS outlines 4 main reasons for this bullish EUR call next year: 1. GS' EUR profile is based largely on the view that USD undervaluation is unlikely without the second most liquid currency in the world, i.e., the EUR also trading overvalued to the USD. 2. GS has taken the view that the trough of the Euro area crisis may have been ... (full story)