VIEW: Goldman Sachs note that "the EU...>

EURO-DOLLAR: VIEW: Goldman Sachs note that "the EU Recovery Fund inched closer

to becoming a reality with an expanded proposal from the Commission and limited

protests from the smaller Northern European member states. The Recovery Fund

could represent a major step toward greater fiscal policy coordination in the

region and a new source of highly-rated Euro-denominated debt for global

investors. While there are a number of remaining uncertainties, we now have more

confidence that the Euro will participate in any broad Dollar weakening, and are

therefore bringing forward the appreciation in our forecasts. Specifically, we

are revising up our 3m/6m/12m targets to 1.12/1.15/1.17 respectively, from

1.08/1.10/1.15 previously. At current levels we do not consider long EUR/USD an

attractive directional trade, but we would have a slight preference for USD vs

EUR funding, given our forecasts."