Here’s an interesting look at how Goldman analysts slipped up on their call on the euro, courtesy of WSJ’s Overheard column.
Goldman currency analysts forecast the euro at $1.35 for months this year, even as the euro plummeted down to four-year lows.
Then on June 6th, they changed their three- and six-month forecasts to $1.15. Big mistake.
On June 7th, the euro bottomed and then went to $1.30.
So on June 15th, the analysts changed their euro forecast back to $1.35, where it is now.
The call shows Goldman freaking about the euro and then becoming bullish on the euro again, like they are now. But for a couple of weeks, they were very unsure – and wrong, about where it was headed.