EUR/USD up 0.24%. Bearish forecast from Goldman Sachs.

EUR/USD was trading at 1.1168 as of the end of Asian session today. It represents an increase of 0.24% from previous close.

Goldman Sachs reported a target on EUR/USD today. According to the report, the analysts are prone to maintain their forecasts of 1.04, 1.00 and 0.95 in 3, 6 and 12 months, which was estimated on January 21. Goldman Sachs believes that EUR/USD will move even lower driven by growth and monetary policy outlooks. Despite the Euro has already weakened substantially during last 18 months, the analysts think that it will further decline based on several fundamental factors affecting it.

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“First, the flow picture should turn increasingly EUR-negative as Euro area residents send funds abroad and reserve managers allocate away from the EUR. Second, we think there is a structural element to disinflation in the periphery as it continues to improve competitiveness compared with the core of the Euro area. As a result, our view is that inflation will be slower to pick up than during a normal cycle. This will keep ECB policy accommodative, maintaining downward pressure on the EUR” written in the report.

Oil prices closed the Asian session slightly lower. The prices started to decline yesterday after a deal between Russia and Saudi Arabia was announced, according to which an agreement was reached to freeze the production on current level. However this move disappointed investors, as it will have a little impact on global oversupply and thus won’t affect prices much.

As of 3:10 AM EST the WTI Crude was trading at 28.92 USD/bbl, down 0.41% and Brent Crude at 31.95 USD/bbl, which is 0.71% lower than the previous close.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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