Currency strategists at Goldman Sachs reduced US dollar forecasts versus the single currency, Japanese yen and British pound due to the poor US economic data. The bank believes that the Federal Reserve won’t raise the borrowing costs until 2013.

According to the specialists, the greenback will decline to $1.45 per euro in 3 months, to $1.50 in 6 months and $1.55 in a year. In addition, Goldman lowered 3-month estimate of the pair USD/JPY from 84 to 82 yen, 12-month prediction was also down from 90 to 86 yen. The target for GBP/USD was increased from $1.79 to $1.85.

The analysts note that the prospects of US economic growth are less convincing than the outlook for many other nations as America faces a lot of problems among which there are high unemployment, weakness in the real estate sector and the inevitable fiscal consolidation. As a result, investors aren’t confident enough to invest more in the United States on the long-term basis.

US currency has lost 6.4% against euro since the beginning of this year, while the Dollar Index has fallen by 4.9%. US GDP showed in the first quarter annual growth of 2.3% that is less than 2.5 % in Europe and 9.7% in China.


Chart. Daily EUR/USD