Goldman Sachs Group Inc. is revising its euro forecast for the second time in six weeks.
The New York-based bank revived its bearish call for the shared currency to drop to 95 U.S. cents in the next 12 months, analysts led by chief currency strategist Robin Brooks wrote in a note to clients Thursday. That decision comes less than two months after Brooks changed his 2016 year-end call for the euro to $1, when he said he “badly misread” the European Central Bank’s December meeting.
The revised forecast “signals changing circumstances and a renewed opportunity,” Brooks said via e-mail Thursday. “After today’s ECB, we think downside is again compelling, in particular since the ECB so quickly signaled the possibility of renewed easing.”
The bank sees the euro falling to $1.04, $1 and 95 cents in three, six and 12 months, he wrote. That’s a change from its Dec. 7 call for the euro to decline to $1.07, $1.05 and $1 during the same periods, and similar to the bank’s previous prediction.
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