Goldman : Long Euro trading Call

 

GOLDMAN: It's Time To Position For A Big Upward Move In The Euro

For the past few months, Goldman Sachs has had a problematic trade on its hands.

On October 22, 2012, the bank's currency strategists recommended clients go long the euro against the Canadian dollar. The trade was initiated at a level of 1.296 with a target of 1.37. (At the time, Goldman saw more upside to the euro in Canadian than in U.S. dollar terms, owing to a projected shift in Bank of Canada monetary policy).

The trade has gone nowhere. It reached its highest point on December 28 – but by then had only risen to around 1.3170. After that, it tanked into the new year and has languished in recent days.

That is to say, the trade languished up until yesterday, when ECB President Mario Draghi revealed that the central bank's latest decision not to cut interest rates was unanimous on the Governing Council.

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If that is how they "predict" we should go short now

 

A quote I found regarding the Goldamn Sachs recommendation

So let's get this straight: Goldman's 0.000 batter has a trade recommendation that has upside of 400 pips, and downside of... 400 pips? As always: do the opposite of what Tom Stolper, who is almost as "accurate" as Whitney Tilson in his recommendations, sayswhich also happens to be the same directionas what Goldman's prop desk does.
 
So let's get this straight: Goldman's 0.000 batter has a trade recommendation that has upside of 400 pips, and downside of... 400 pips? As always: do the opposite of what Tom Stolper, who is almost as "accurate" as Whitney Tilson in his recommendations, sayswhich also happens to be the same directionas what Goldman's prop desk does.

Best advice yet in this year