Saturday, November 12, 2011

Euro Debate: Goldman Says Buy, Morgan Stanley Says Sell

According to the gurus at Bloomberg Goldman Sachs. recommends buying the euro after developments in Europe’s sovereign-debt crisis this week. Morgan Stanley said its time to sell the 17- nation currency against the dollar.
The 17-nation currency gained today, rising 1.1 percent to $1.3749, as former European Central Bank Vice President Lucas Papademos was sworn in as prime minster of Greece and Italy’s Senate approved an austerity bill, paving the way for a new administration that may be led by former European Union Competition Commissioner Mario Monti. Italian bonds gained, pushing yields down from euro-era records above 7 percent.

The emergency of the new governments helps reduce “near- term political uncertainty” and suggests “that euro-zone fiscal tensions could continue to decline, at least for a period of time,” wrote Thomas Stolper, Goldman’s London-based chief foreign-exchange strategist, in a client note. Investors should target $1.40 and should exit the trade if the euro falls to $1.35, according to the Goldman note. In a video webcast today, Stolper reiterated a 12-month forecast of $1.48 for the euro.
Morgan Stanley said….

For more check out http://www.bloomberg.com/news/2011-11-11/goldman-says-buy-morgan-stanley-says-sell-euro-on-sovereign-debt-debate.html

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