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13 Sep 2013
Flash: GBP/USD projected at 1.6800 by year-end – Goldman Sachs
FXstreet.com (Lisbon) - We expect the best FX opportunities into year-end in European currencies, including the EUR and GBP, suggests the Goldman Sachs Research Team.
Key quotes
“Growth surprises and revisions of consensus growth expectations are currently most supportive for these currencies. Given the ongoing healing after the Euro area crisis, more upside growth revisions are likely and will contribute further to already strong capital inflows.”
“We also expect further depreciation of current account deficit currencies, in particular in EM. With European FX strength and depreciation pressures in EM deficit countries occurring at the same time, we continue to believe that the trade-weighted Dollar will remain range-bound. Our forecast revisions reflect these views, with a year-end target for EUR/USD of 1.38 and GBP/USD of 1.68.”
Key quotes
“Growth surprises and revisions of consensus growth expectations are currently most supportive for these currencies. Given the ongoing healing after the Euro area crisis, more upside growth revisions are likely and will contribute further to already strong capital inflows.”
“We also expect further depreciation of current account deficit currencies, in particular in EM. With European FX strength and depreciation pressures in EM deficit countries occurring at the same time, we continue to believe that the trade-weighted Dollar will remain range-bound. Our forecast revisions reflect these views, with a year-end target for EUR/USD of 1.38 and GBP/USD of 1.68.”