Morgan Stanley staying short EUR/USD - eFXnews

FXStreet (Łódź) - The eFXnews team remark that Morgan Stanley remains bullish on the USD following the recent string of better than expected US data.

Key quotes

"Barring the safe-haven flows supporting US fixed income currently, money market normalization in the US has begun, in our view."

"'FOMC voting member Fisher’s comments point to an increasing debate within the Fed about bringing forward the first rate hike – we expect US front-end yields to normalize, MS projects'."

"US data have been strong across the board and now the missing piece for more hawkish Fed policy is higher wages. Wages have stayed at a muted 2% YoY level, which is too low for the Fed given its 2% inflation target."

"'Markets will stay tuned, with inflation indicators staying particularly in focus ,' MS argues."

"MS maintains a short EUR/USD position in its strategic portfolio from 1.3620 with a profit-stop at 1.35, and a target at 1.31."

"As a short-term recommendation, MS enters a fresh short today from 1.34, with a stop at 1.3460, and a target at 1.31."

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