Goldman Sachs revises EUR/USD forecasts and recommends long EUR/SE

<p>Goldman Sachs has updated its forecasts for the EUR/USD currency pair and is advocating for a long position in EUR/SEK as part of an inflation hedge strategy.</p><p>Key Takeaways:</p><ul><li><p>Revised EUR/USD Forecasts: Goldman Sachs is adjusting its projections for EUR/USD to 1.07, 1.10, and 1.12 in 3, 6, and 12 months respectively, up from its previous estimates of 1.05, 1.05, and 1.10. The updated forecasts maintain a year-end expectation of 1.10 but indicate less downside in the short term and a more extended recovery of the Euro relative to the US Dollar beyond the peak.</p></li><li><p>Long EUR/SEK as Inflation Hedge: Goldman Sachs reiterates its recommendation for investors to take a long position in EUR/SEK with a target of 12.00. The bank believes that Sweden faces a more challenging trade-off due to its economy's higher sensitivity to policy rates and particular exposure to the manufacturing sector. This position is seen as a way for investors to protect against the possibility of persistently high inflation and elevated interest rates.</p></li><li><p>Leveraging Swiss Franc: Additionally, Goldman Sachs advises investors to explore ways to utilize the Swiss Franc’s traditional inflation hedging properties.</p></li></ul><p>In Conclusion:</p><p>Goldman Sachs has revised its EUR/USD forecasts to reflect a milder downside in the near term and a more prolonged recovery for the Euro. Moreover, the bank recommends a long position in EUR/SEK to hedge against potential inflationary pressures and higher interest rates. It also suggests that investors consider capitalizing on the Swiss Franc's inherent characteristics as an inflation hedge.</p><p>For bank trade ideas, <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1688063830447000&amp;usg=AOvVaw0RKAGBOw7kXqpmSY_kZ0Tb">check out eFX Plus</a>. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1688063830447000&amp;usg=AOvVaw0RKAGBOw7kXqpmSY_kZ0Tb">Get it here</a>.

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This article was written by Adam Button at www.forexlive.com.