EUR/USD: euro should fall to 1.05 by next ECB meeting, and to 0.95 withing 12 months (Goldman Sachs)

In a note to clients today, Goldman Sachs estimates that the EUR/USD has exited the period of indecision that began with the Fed meeting in March, and ended with the Fed and ECB's recent meeting, and now the pair is resuming its overall bearish trend.

"We believe the October US employment figures published last Friday make the rate hike in December almost certain, but the markets seem reluctant to clearly adopt long USD positions.

We therefore believe that there is significant room for the EUR/USD to decline to parity first, then head towards 0.9500 within 12 months. In the short term, we anticipate a decline of the EUR/USD to 1.05 by the December ECB meeting."