ECB stimulus in December could shave 5 or 6 cents off the euro-dollar exchange rate Getty ImagesGoldman is still an outspoken euro bear, despite missing previous bearish forecasts.The euro could finish the year at $1.05 if the European Central Bank makes good on its promise of more quantitative easing in December, according to a report from Goldman Sachs Group. The research note was written by Robin Brooks, Goldman’s top currency strategist, and his team. It is important to note that they’ve been outspoken euro bears all year — even forecasting back in March that the euro would hit parity with the dollar in September. The Goldman strategists argued that the prospect of another cut to the ECB’s deposit rate — which is already at negative 0.2% — will cause the euro to reprice at $1.11, the bottom of its range from the past two months. Considering that ECB President Mario Draghi went out of his way during Thursday’s news conference to warn his audience that he and his fellow policy makers had discussed the possibility of expanded stimulus. Here’s a chart from Goldman GS, +1.06% that shows how the euro reacted to Draghi’s statement. The mere suggestion of a deposit rate cut triggered a sharp selloff in the euro. The euro EURUSD, +0.0998% traded at a two-month low just above the $1.11 level late Thursday, according to data from FactSet. Goldman’s research shows that an increase in the central bank’s program of asset purchases is more likely at its Dec. 3 meeting. Goldman’s European macro analysts believe this could shave five or six U.S. cents from the euro-dollar exchange rate. That would take the euro back to the $1.05 level — near the 12-year low it reached in March — just in time for New Year’s. That is still short of Goldman’s call for parity but pretty close. More from MarketWatch