Tuesday, October 4, 2011

Goldman Sachs cut forecasts for euro

Analysts at Goldman Sachs reduced their 2012 global economic growth forecast from 4.3% to 3.5%.

Japan’s growth outlook for the fiscal year beginning in April 2012 was decreased from 2.5% to 2.1%, while the estimate of the nation’s GDP growth this fiscal year was lowered from 0.2% to 0.1%.

According to Goldman, the United States will come close to recession at the beginning of 2012 – its economy will add in the first quarter only 0.5%. The nation’s economic forecast for the next year was cut from 2.0% to 1.4%.

The specialists think that during the next several quarters the euro zone’s core nations such as Germany and France will go through mild recession beginning in the fourth quarter, while the peripheral nations of the currency union will suffer much more. European GDP will add in 2012 only 0.1%.

The bank also revised down 3-month forecast for EUR/USD from $1.40 to $1.38 and for EUR/JPY from 108 to 106 yen.

daily eurusd 14-59 

Chart. Daily EUR/USD

published by FBS Holdings © 2011