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Home » Technical Analysis » ForexLive » EUR — Goldman Sachs says “one of our strongest convictions remains EUR downside”

EUR — Goldman Sachs says “one of our strongest convictions remains EUR downside”

Posted by in ForexLive - June 17th, 2014 6:54 pm GMT

From Goldman Sachs Global Macro Research:

  • One of our strongest convictions remains EUR downside
  • In particular, we had flagged in recent weeks the potential for EUR/GBP to move substantially lower to around 0.70 — 0.76, a range we identified on the basis of the 2- and 5-year rate differentials
  • Last week’s change in tone by Bank of England Governor Mark Carney only strengthens our intuition that this is a good way to play EUR downside
  • Our updated model for EUR/GBP … puts the updated range for the cross at 0.67 — 0.74, i.e., below the range we had originally identified some weeks ago, a reflection of how far rate differentials have moved since Governor Carney’s speech last week
  • The signal for EUR/GBP remains highly statistically significant, even as this cross has moved onto the radar screen of more market participants

Goldman Sachs bearish on EUR GBP 18 June 2014-

And as a ps., here is Goldman with their bearish EUR/GBP call from about two and half weeks ago, nope, three weeks ago!: Goldman Sachs view on euro ahead of the ECB meeting — EUR/GBP seen as most at risk to the downside

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