Forex News | Goldman Sachs: Yen And Euro Will Free Fall

Goldman Sachs Group Inc. predicted that the Yen and the Euro will weaken as a result of additional quantitative easing program (QE) conducted by Japan and Europe while the US Federal Reserve was still preoccupied with the possibility to raise the benchmark interest rate in the monetary policy meeting this week.
Yen And Euro Will Decline Sharply
The Japanese currency will decline reached 130 against the US dollar within 12 months in line with Bank of Japan Governor Haruhiko Kuroda, who is expected to return to add stimulus in October, as told by a Goldman Sachs analyst, Robin Brooks, in New York to Bloomberg. On the other hand, according to Goldman Sachs, the currency is nicknamed the single currency, the Euro, will plunge to 95 US cents next year due to the expansion of the asset purchase program in order to achieve the inflation target.
Strengthening of the Euro and the Yen broke down in the middle of the global markets, triggered by the shocking devaluation of the action taken by the Chinese government against their Yuan last August. The investors also have the opportunity to sell the currency-their currencies, Goldman wrote. The Japanese currency got a 6.2 percent gain in the past three months, most currencies rose prestige among 10 other major currencies. Following the existing Euro Yen which appreciated by 4.3 percent, as shown by the Bloomberg index.
"The devaluation of the RMB a month ago, as well as a surge in risk aversion generated, has made the forex market 'cloudy' or hard to read him," wrote Goldman Sachs. Risk aversion, plus Goldman Sachs, has made price action increasingly separated from the fundamental happening in the last few weeks.
The Fed Hold Lift-Off
The yen was little changed at 120.42 per US dollar figures at 12:39 this afternoon Tokyo time, while the euro rose 0.1 percent to 1.1350 per US dollar figures at the same time. As for interest rate hikes the Fed, Goldman Sachs estimates that the US central bank will not change interest rates tomorrow and Thursday only give a signal that the "lift-off" will be conducted in the near future.