Morgan Stanley out early with their weekly FX review (must be taking the extra day off tomorrow)
Morgan Stanley see EURUSD running up towards 1.08, where they say is a good place to load shorts.
"As the ECB tries to resolve the collateral squeeze, the front end of the EUR curve has flattened. The technical EUR bond sell-off should lend some temporary currency support, allowing EURUSD to bounce from levels above 1.0570 to near 1.08. However, dominance of USD strength should prevail as nominal yield differentials continue to widen. Hence, EURUSD near 1.08 offers a selling opportunity, in our view."
This report was written yesterday so we can give them a bit of wriggle room on looking for a bounce from 1.0570. 1.0580 has proved stiff resistance today.
Here's what they say about some of the majors.
