FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
ETX Capital information and reviews
ETX Capital
90%
FxPro information and reviews
FxPro
89%
FIBO Group information and reviews
FIBO Group
88%
EUR/USD
1.1916
GBP/USD
1.394
USD/JPY
110.2129
USD/CHF
0.9175
USD/CAD
1.2349
EUR/JPY
131.3321

Goldman Sachs backs the euro as the dollar hits two-month lows


20 April 2021

Goldman Sachs has recommended investors go long on the euro, as the dollar touched its lowest point since early March on Monday. A long position is the purchase of an asset in the expectation that it will rise in value. During Monday morning trade in Europe, the dollar index was down 0.5% against a basket of major currencies, to trade at 91.156 – it’s lowest level since March 4.

On Friday, Goldman Sachs upped its forecasts for the euro against the greenback to suggest more appreciation in the near term. It raised its three-month target to $1.25 from $1.21, while holding its 12-month forecast at $1.28. Analysts, led by Co-head of Global FX, Rates and EM Strategy Zach Pandl, also issued a new long trade recommendation for the euro with a $1.25 target price and a stop of $1.175, meaning Goldman will abandon the trade if it the euro sinks below that level. The common currency was changing hands at $1.2032 on Monday.

Goldman’s euro call comes after equity strategists at the bank raised their price target for the pan-European Stoxx 600 index. They expect a 10% total return over the next 12 months, outpacing the 6% expected from the S&P 500. The analysts gave a number of additional reasons why the euro looked set to rise. These included the anticipated acceleration in economic growth in Europe, which they said would likely see the European Central Bank slow the rate of its asset purchases under its pandemic emergency purchase programme (PEPP) after its June meeting. The International Monetary Fund said last week that Europe’s economy is on track to return to its pre-crisis levels in 2022, growing by 3.9% next year.

#source

Related

The Euro is climbing quietly

EURUSD is growing slowly and quietly while investors are following the statistics and waiting for the Fed meeting results. The major currency pair continues...

16 Jun 2021

Dollar boom or bust? All eyes on Fed today

Stock markets have taken a step back from recent highs, and the currency market is seeing some strengthening of the dollar ahead of the Fed meeting later Wednesday...

16 Jun 2021

EUR/USD recovered losses, all eyes on US Retail Sales

EUR/USD is recovering after the enormous slump on Monday. It has reversed up from the 50-day moving average of 1.2090 and keeps edging higher...

15 Jun 2021

US Dollar Index stays under pressure around 90.00

The US Dollar Index (DXY), which tracks the greenback vs. a bundle of its main competitors, comes under extra selling pressure on Friday, although it manages...

11 Jun 2021

EUR/USD remains on the defensive near 1.2170 area

The EUR/USD pair held steady near the top end of its daily trading range, around the 1.2175-80 region and moved little post-ECB announcement. The pair stalled...

10 Jun 2021

The USD switched to consolidating

EURUSD has fixed within a narrow range; investors are saving strengths before the ECB and FRS meetings. The major currency pair continues consolidating...

9 Jun 2021


Editors' Picks

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.