In the wake of the European Central Bank (ECB) meeting a client note with new predictions for the euro

Now looking for EUR/USD to fall:

  • To $1.04 in 3 months
  • 1 in 6 months
  • And 0.95 cents in 12 months

Commenting on the meeting:

"After today's ECB, we think downside is again compelling, in particular since the ECB so quickly signaled the possibility of renewed easing"

"Draghi is not letting himself be dissuaded from pursuing further accommodation"

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Goldman Sachs have been a little confounded with the ECB in the past couple of months.

Prior to the December meeting:

"We continue to expect EUR/$ to head into the ECB at 1.05, drop 2-3 big figures on the day, and then fall to parity by end-December, aided by a Fed lift-off."

Which didn't pan out at all after the ECB and Draghi dialed back their eagerness for further easing. But, they are big boys and girls at Goldman Sachs, readily admitting they badly misread this meeting.

Goldman Sachs getting back on the horse after yesterday's ECB