Goldman Sachs upgrades its forecast on USD/EUR rate

Baku. 10 August. REPORT.AZ/ The Goldman Sachs analysts revised their 12-month forecast for the euro against the dollar to $1.15 from $1.05.

Report inform citing the Bloomberg.

Perception of a stalled agenda on tax reform in Washington, soft domestic inflation and wage growth and a possible change of leadership at the Federal Reserve have hurt the dollar in the first eight months of this year, according to two analysts at the New York-based U.S. investment bank.

"But we are not yet ready to call for sustained (dollar) weakness," Goldman Sachs senior economist Zach Pandl and chief emerging markets macro strategist Kamakshya Trivedi wrote in a research note. "Instead, we see a mixed outlook for the greenback, with gains against some crosses and losses against others."

Pandl and Trivedi said several factors would help stabilize the greenback including a possible U.S. tax cut by 2018 and an expected slowdown in capital inflows in Europe.