In a recent note, Goldman Sachs argued that next week’s ECB meeting (June 5) could see EUR/USD fall to 1.33 (see details here), especially if – on top of the 15bp deposit cut and credit easing, the ECB starts to sound more worried about deflation risk. This week, GS revisited this issue to give its final thoughts on the ECB possible actions next week and their likely impact on EUR/USD. Mainly, GS outlines 2 different scenarios for the ECB: 'talks like it means it', and 'sheep in wolf’s clothing'. ECB: talks like it means it'. "Put simply, EUR/USD remains high because the market doesn’t believe that the ECB will do ... (full story)