EUR/USD appears bullish over the medium-term – Goldman Sachs

Analysts at Goldman Sachs stay bullish on the euro over the following six-12 months, anticipating a structural change within the ECB financial coverage.

Key quotes

“A key part of our medium-term bullish outlook is {that a} structural change in financial coverage will assist entice personal sector traders once more, which might assist reverse the EUR 3tn in fastened revenue outflows for the reason that begin of the unfavorable fee period. But when the ECB strikes slowly over fears of making stress in sovereign bond markets, risk-free charges could stay average for an extended interval.”

“We nonetheless assume the ECB’s comparatively cautious method is extra prone to delay fairly than derail the Euro’s restoration, however it’s value protecting in thoughts that we do want a financial coverage to step again a bit for our thesis to play out.”