Despite the recent sell-off in EUR/USD on the back of a more dovish ECB than expected and on a light FX verbal intervention from President Draghi, Goldman Sachs still projects the pair to reach 1.40 by the end of March. GS believes that on a balance, the 4 factors behind its bullish EUR call remain largely unchanged: First, the US continues to run a BBoP deficit and our BBoP framework suggests that the nominal trade-weighted USD is likely to depreciate by about 2%-5% per annum on a trend basis – the real USD TWI is less than 4% away from its all time low. Second, the Fed arguably remains the most dovish central bank ... (full story)