Euro Bears Officially Throw In The Towel



You can erase the word “parity” from your vocabulary, at least for now.Euro bears have thrown in the towel.


After tracking the euro’s slide from about $1.45 at the beginning of 2010, the median forecast of currency strategists has stayed within two cents of $1.20 since the start of June, according to data compiled by Bloomberg. Goldman Sachs Group Inc. and Wells Fargo & Co. raised their estimates in the past two weeks, joining HSBC Holdings Plc and Deutsche Bank AG in predicting a stronger euro.

Goldman’s vacillating on the euro has been particularly well-covered and embarrassing, having gotten things wrong just about every step of the way.

As far as we know, Morgan Stanley remains in the euro uber-bear camp, though it issued its last call right before the stress tests. We shall know soon whether the results weigh at all on its outlook.

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