Tuesday, August 3, 2010

Goldman, Others Bullish on Euro, Predict Big Rise

By: Dan Weil The euro has gained more than 9 percent against the dollar since hitting a four-year low of $1.1877 in June, and many experts say the move will continue.

That includes Goldman Sachs. It predicts the euro will rise to $1.35 within six months and $1.38 within a year, Bloomberg reports. The euro recently stood at $1.31.

Just about a month ago, Goldman had predicted the euro would keep slumping to a seven-year low against the dollar.

But economic data over the last few weeks showing weakness in the United States and strength in Europe have created a change in sentiment.

“Weaker U.S. growth, reasonably solid euro-zone macro data and less political-fiscal disruptions than feared have been a feature of the past few weeks,” Goldman analysts wrote in a report obtained by Bloomberg. (more)

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