Via a note from Morgan Stanley late last week:
- closed its short EUR/USD trade recommendation
- prefers short EUR/JPY instead
- expects the euro to fall due to a weakening eurozone economy
- expects JPY to rise as US rates fall
On the USD, are less bullish, “Our conviction about dollar strength has waned meaningfully”:
- “US data deceleration has compressed growth differentials, US rates have fallen further compared with peers, and investors appear far from defensive based on equity returns.”
