Goldman Sachs revises its Euro sub-parity call

United States' largest investment followed in the footsteps of many analysts and banks revising their target for Euro/Dollar parity. We have also revised our call for parity from near term to medium term. We in the near term seeing possibilities of higher Euro.

Before Thursday's European Central Bank's (ECB) big disappointment, Goldman was calling for parity in Euro/Dollar and Euro to reach as low as 0.8 against Dollar by 2017 year end.

However the bank has now revised its call for Euro/Dollar to 1.07 in 3 months, 1.05 in six months and parity in a year.

Prior forecast was 1.02 in 3 months, parity six months and 0.95 in a year. It has also revised its 2017 forecast to 0.9 from 0.8 prior.

However, Goldman has expressed their reluctance to do this change as fundamentals (larger output gap and lower inflation) but since governing council couldn't unanimously deliver a message in line with president Draghi's November 20th speech signaling urgency of action, the bank acknowledges time not ripe for Euro down theme, though it may return later.

Euro currently trading at 1.081 against Dollar.