Goldman Sachs cuts euro forecast, predicts parity with dollar in September
On Friday analysts at Goldman Sachs said the euro EURUSD is poised to continue its steep drop against the dollar and is on track to reach parity with the U.S. peer in September.
They
downgraded their six-month euro forecast to $1, from $1.10 expected
previously and also slashed the three-month forecast to $1.02 from
$1.12. Analysts cut the 12-month outlook to 95 cents from $1.08.
By the end
of 2017, Goldman analysts see the euro slipping to 80 cents - the lowest level ever for the common currency.
"We therefore expect more
downside in the near term, with the expected removal of 'patient' at
next week's FOMC [meeting] a key catalyst," they said in the note.
On Friday the euro traded at $1.0575, down from $1.0637 late Thursday in New York.
