Goldman Issues 1.40 Price Target On EURUSD

Tyler Durden's picture

Time to sell the EURUSD with both hands and feet, not to mention with MF Global-type leverage: that uber-contrarian FX indicator, Goldman's Thomas Stolper, who has not had a notable call correct in the past 2 years, just came out with a long EURUSD call, calling for a 1.40 target and a 1.35 stop loss. Yes, this means Goldman is now selling EURUSD until 1.40 and will begin buying it at 1.35. As a reminder here is how Stolper's last EUR/$ recommendation ended.

From Goldman:

Over the last two days, and after another period of extreme risk aversion, European policymakers appear to have made some progress towards reducing near-term policy uncertainty.

 

The nomination of Lucas Papademos as Greek PM governing with support from all key parties reduces the risks of escalating confrontation between other Eurozone countries and Greece. Indeed, the chance of more structural reforms being implemented in

Greece has risen as well. In Italy the high likelihood of a unity technocrat-led government being put in place over the weekend, led by Mario Monti, is also encouraging.

 

These two developments suggest that Eurozone fiscal tensions could continue to decline, at least for a period of time. FX markets had started to price extremely negative scenarios again in recent days as visible in risk reversals for example. Given the policy news described above, we think the fiscal risk premium can decline again in the near future and hence we see the potential for a quick EUR/$ move back towards 1.40.

 

We would go long EUR/$ with a narrow stop at 1.35 for an initial target of 1.40 (currently at 1.3715).

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TheSilverJournal's picture

I don't know about that, but any central bank is there to benefit the bankers + politicians and not the people. 

Instant Wealth's picture

Others say, "the Euro is an instrument to strip the wealth off the Germans".

A Man without Qualities's picture

seriously, we get one day of no bad news and the bulls try and push us back into rally mode... hilarious..

rumblefish's picture

no kidding...this is fully retarded. maybe i'm biased because I'm underwater on some short positionss....

FutureShock's picture

Yeah sure that's a good play for a few hours as new leaders will give the tiny bit of hope that they can fix this so he will be right. Then when people go long he will already be short.

Trade reccomendations by the hour.

 

NOTW777's picture

EUR - cup and handle; neck 1.3650ish - it is what it is

inverse H & S on spx and dow from yesterday playing out

SheepDog-One's picture

GS hopes you pile in and buy their bullshit Euros before they collapse.

neevarp's picture

What if these guys really mean it this time?

Bear's picture

I've got the feeling that all this constant attention to Europe and the never ending barrage of news is just a huge subterfuge to keep us focused away from the deleveraging that must happen here in America. As long as the news is off shore the media doesn't have to explain the realities of our economy and the conditions here.

LookingWithAmazement's picture

1.40 -- no euro crash. Bye bye crisis (what crisis?). Boring world we live in.

BeatTheMarket's picture

Reminder to my self: sell any E/U rallies until 1.40, thanks Goldman

Eireann go Brach's picture

Baahhhhh Bahhhh Bahhhh said the wolf in sheeps clothing Stolper, and yes all the stupid sheepies followed him into the Abattoir known as the giant fucking squid!

searcher68's picture

Hmmm, didn't see any selling at 1.3496. Maybe this was just a paper trade? Mental stops only?