Goldman Sachs slashes euro, dollar forecasts citing Italian instability

Goldman Sachs cut its euro/dollar forecast for the next 3, 6 and 12-months because of uncertainty stemming from Italy's political crisis

US investment bank Goldman Sachs said on Wednesday it had cut its euro/dollar forecast for the next 3, 6 and 12-months because of uncertainty stemming from Italy's political crisis.

The bank said it forecast the euro to trade at $1.15 over the next three months, versus $1.20 previously. It also cut its six-month forecast to $1.20 from $1.27 and the 12-month forecast to $1.25 from $1.30 referendum on Italy's membership of

 the euro zone.