More confidence in sustained EUR/USD appreciation - Goldman Sachs
|Analysts at Goldman Sachs are more confident in sustained appreciation in EUR/USD as they expect investors to take a more balanced approach and reduce long-standing preference for the US financial assets and raise exposure to the Eurozone assets.
"We are not confident that the US asset market dominance over the last ten years will continue-and at least from a GDP growth standpoint our economists think Europe will actually outperform. Plus, it's important to remember that European markets kept pace with the US for a long stretch after the single currency's introduction-perhaps suggesting Europe's lackluster returns recently may have been a byproduct of the particular macroeconomic environment that followed the 2008-09 recession."
The investment bank has raised its 12-month EUR/USD forecast to 1.25 from the previous projection of 1.17 and expects the exchange rate to trade around 1.15 in three months from now and near 1.20 by January.
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