German bank sees euro going down 4% by end-2015

[TORONTO] Landesbank Baden-Wuerttemberg (LBBW) is predicting that the euro will tumble 4 per cent to US$1.20 by the end of 2015, adding to its 11 per cent drop from this year's high of US$1.3993 in May.

The German bank, which topped Bloomberg's rankings for the four quarters ended Sept 30 and which rode the euro's weakness to become the world's most-accurate foreign-exchange forecaster, sees no reason to give up on that view even with the currency already at its weakest level in two years.

Its forecast is more bearish than the consensus view of a drop to US$1.23, based on the median estimate of 48 strategists in a Bloomberg …