The euro is likely to remain supported by its status as the dollar's sole rival for currency diversification by central banks, according to Goldman Sachs Group.
"The euro's main feature will likely remain its function as the anti-dollar," a team led by London-based economist Thomas Stolper wrote in a report dated yesterday.
"Given the euro-zone is pretty stable overall, although not overly attractive either, swings in dollar sentiment will likely be reflected in the extremely deep and liquid euro-dollar cross. The euro also remains the only true challenger to the dollar in terms of foreign-exchange reserve currencies."
Bloomberg