Morgan Stanley is expecting another leg up for the US dollar, but for it not to be as strong as it was February to August
MS cite:
- Rising US bond yields
- Will drive volatility in US assets
- Will see reduction in foreign holdings of US assets and hence a limit to the next USD appreciation
USD will rise against equity-sensitive and capital-importing FX
- EM, CAD, AUD and NZD
Current-account surplus and asset currencies like the JPY and EUR are likely to remain relatively protected
via Bloomberg summary
