US investment bank Goldman Sachs has advised investors to take long investment positions in the euro. The dollar hit its lowest level since early March against the single European currency on Monday.
If an investment bank recommends taking a long position, it means that it expects the value of the asset to grow. In this case, it is the euro, which, according to Goldman Sachs, should strengthen against the US dollar in the coming weeks. The dollar index weakened against the basket of world currencies by half a percent on Monday morning. It fell to its lowest level since March 4 this year.
Goldman Sachs raised the euro’s three-month dollar target from $ 1.21 to $ 1.25 per euro, and the 12-month target exchange rate even to $ 1.28 per euro. The increase in the target exchange rate came shortly after Goldman Sachs analysts issued a 12-month forecast for the pan-European stock index European Stoxx 600. According to them, it will strengthen by 10 percent over the next twelve months, which should be more than the expected appreciation of the main index of the New York Stock Exchange S&P 500. It is to strengthen by only six percent during the same period.
