The latest forex trading idea from Goldman Sachs
Goldman Sachs’ Thomas Stolper says to buy EUR/GBP in a client note.
He suggests buying the pair at 0.8490 with a target of 0.8800 and a stop on a close below 0.8350. Today’s high was 0.8489.
Stolper’s reasoning is that the risk of action at Thursday’s BOE meeting is “underestimated” and lower inflation has opened the door to QE at this week’s meeting, although their central case remains no changes, for now.
Also, Goldman says safe haven flows are ebbing and that Carney may shift dovishly.