Goldman's One-Day Euro Forecast Is for 3% Fall on Dovish Draghi
Why the Euro and Dollar Will Reach Parity by Year-End
This article is for subscribers only.
Just as investors were taking their bets on a weaker euro off the table before Thursday’s European Central Bank meeting, Goldman Sachs Group Inc. said it was time to wager on.
Robin Brooks, Goldman’s chief currency strategist, said ECB President Mario Draghi will deliver a “dovish surprise” at the meeting that will drive the euro down by as much as “three big figures” to about $1.03, a level not seen since 2002. The euro has already weakened 3.7 percent since the beginning of November to $1.0596 at 1:05 p.m. in Tokyo on mounting speculation the ECB will expand its bond-buying program and cut interest rates to shore up the region’s non-existent inflation.