Goldman Sachs has cut its 12-month EUR/USD forecast to 1.30 compared to 1.40 previously. Their 3-month forecast remains unchanged at 1.3800.
Analysts say the change is mostly about a forecast for better US growth than a reflection of last week’s ECB press conference. They say the pickup in US growth will take some time to materialize and spill over to short-term rates, which is why the 3-month forecast is patient.
On the ECB, they didn’t pick up any signals of imminent action from the Draghi at last week’s press conference.
