Goldman Sachs Says Exit Euro, Mexican Peso on Greece Outlook
Goldman Sachs Group Inc. recommended its clients exit the bets that the Mexican peso and the euro will rise against the dollar, citing “significant uncertainties” surrounding the Greece bailout negotiations.
The wagers on the euro and the peso have returned 0.3 percent and 2.9 percent, respectively, since Goldman recommended them on Jan. 25, analysts led by London-based Thomas Stolper wrote in a note.
“In the very near term, the risk-reward for our recommendations has deteriorated,” the analysts said in the report. “The compression in sovereign risk premia has run most of its course. The next few weeks will see significant uncertainties linked” to the Greek bailout negotiation, the analysts wrote.
The euro fell for a fourth day, declining 0.5 percent to $1.3068 as of 11:16 a.m. New York time. The peso dropped 0.3 percent to 12.7932 per dollar.
Goldman Sachs had expected the euro to rise to $1.38 and the peso to advance to 12 per dollar when it made the recommendations.
To contact the reporter on this story: Ye Xie in New York at yxie6@bloomberg.net
To contact the editor responsible for this story: Laura Zelenko at lzelenko@bloomberg.net;
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