A note from GS on Friday on the euro. See it still around 1.10 in 3 months but to 1.15 in 12.
- "Fundamentals need to turn more euro-positive before we see spot appreciation, and that is not yet apparent in the data
- "The fundamental signals we consider meaningful" in the 1 to 6 mth horizon "are not yet bullish the euro"
Given valuation and positioning though the next big move should be up, watch for signs of a more robust European rebound:
- "If our forecast for better global growth proves correct, the most interesting G-10 exchange rate next year might be the beleaguered euro"
