EUR/USD: parity could be reached quicker than expected due to new easing by ECB (Goldman Sachs)

Today, the Goldman Sachs bank gives an update on the EUR/USD following yesterday's ECB meeting:

"The EUR/USD has fallen sharply since the US presidential election and is now under our 3-month target, implying that parity could be achieved earlier than we currently expect.

We continue to believe that the EUR/USD will fall amidst a background of divergence in terms of growth, inflation and monetary policy.

The EUR/USD is mainly guided by the dollar, but political risks in Europe could gain in influence and participate in the downward pressure on the currency, especially since everything suggests that the ECB's policy will remain very accommodative for a long time."