08 OCT 2010
Tyler Durden | Zero Hedge
A shining example of "the chicken of the egg" type of analysis has emerged courtesy of Goldman's FX and European economic teams.
As we disclosed first a few days ago, the Goldman FX guys raised their 12 month EURUSD forecast from $1.38 to $1.55.
Obviously, Erik Nielsen economist group has now decided to cut Europe GDPs across the board, with only Italy and France getting hit in 2010, and pretty much everyone in 2011: total projected Europe GDP has now declined from 2.2% to 1.8% in 2011.
Of course, this would mean immediately that the EUR currency should decline in the future, as this projection is realized, resulting in GDP growth again. Will the Goldman FX team (which incidentally once again top ticker the pair with sublime perfection) then adjust its EURUSD target lower taking account to weaker GDP projection, only to be followed by the economists raising their GDP, and so far to infinity... Catch 22?
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