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.