Goldman’s O’Neill: Euro Will Soar 10 Percent This Year

The euro’s recent plunge to a four-year low was overdone, says Goldman Sachs chief economist Jim O’Neill.

He forecasts the currency will appreciate by about 10 percent, to $1.35, in the next three to six months, as investors come to realize the United States has a debt crisis just like Europe.

All the talk about the euro quickly dropping to $1 is unrealistic, O’Neill says.

“That’s 21 to 22 percent away. That’s huge move,” he told Bloomberg. (more)