Top Forecaster Sees Weaker Euro on ECB Embracing QE
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One German bank rode the euro’s weakness to become the world’s most-accurate foreign-exchange forecaster, and it sees no reason to give up on that view even with the currency near its weakest level in two years.
Landesbank Baden-Wuerttemberg, which topped Bloomberg’s rankings for the four quarters ended Sept. 30, is predicting the euro will tumble more than 4 percent to $1.20 by the end of 2015, adding to its 10 percent drop from this year’s high of $1.3993 in May. Its forecast is more bearish than the consensus, which is for a decline to $1.23, based on the median estimate of 48 strategists in a Bloomberg survey.