EUR/USD: Risks skewed to the downside ahead of June ECB meeting – Goldman Sachs

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Economists at the investment banking giant, Goldman Sachs, offers a tactically negative view on EUR ahead of the June” European Central Bank (ECB) meeting.

Key Quotes:

“US-China trade war to continue as a negative for the Euro.

On today’s stay of execution on auto tariffs, a delay was their “base case”.

ECB is closer to easing than the Federal Reserve is.

If EM central banks use reserves to defend their currencies, they may need to sell EUR/USD for portfolio rebalancing.

Support from EUR has come from covering of EUR-funded emerging-market carry trades.” 

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