Euro Treading Water Is No Reason to Give Up Faith for Goldman
- ECB policy, rising yields, portfolio inflows to boost currency
- Euro still cheap, $1.30 call ‘not particularly crazy:’ Nomura
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The euro may have had a slow start to the year, but that hasn’t deterred its fans.
The common currency has been range bound since the European Central Bank’s January meeting as the fervor about tighter policy that drove it sharply higher in the previous weeks cooled. Now that it appears to have weathered the worst-possible outcome in the March 4 Italian election, bullish views are re-emerging, with Goldman Sachs Group Inc., Morgan Stanley, and ING Bank NV all betting the euro will end the year stronger.