Euro’s Dive Shows Analysts May Be Too Cautious Again
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The euro is starting 2015 with a tumble against the dollar, raising the prospect that for a second year analysts weren’t bearish enough in their forecasts.
In only its third trading day, the single currency already has slumped below the median of more than 50 strategist estimates in a Bloomberg survey for both the first and second quarters. Falling as much as 1.2 percent today and grazing $1.18, their target for year-end, the euro touched its weakest since March 2006. Should it close below that level this week, trading patterns suggest the euro-dollar pair, the world’s most-traded, could reach the 2005 low of $1.1640.