Subscribe to RSS

Checking In On Our USD Correction Call – Morgan Stanley

ECB President Draghi successfully batted down the EUR by stating (a) policy needs to be re-examined in December and (b) further deposit rate cuts are firmly on the table, notes Morgan Stanley.

“While the EUR is not an explicit policy target, the central bank more than recognizes its importance to achieving its mandate. The Bank has learned from the difference in the EUR’s 2014 versus 2015 experience that rate cuts, as opposed to QE, have the biggest effect on EUR. Of course a combination of policy tools is the most powerful way to get rates lower across the curve and would have the biggest negative impact on EUR,” MS adds.

EURUSD

“We elect not to challenge this shift with EUR longs, but we still think the broad USD TWI has downside near-term. The fundamental reasons for our USD correction call are still intact, namely (1) China’s cyclical stabilization, (2) contained outflows from China and (3) subdued US growth and inflation that will keep the Fed cautious,” MS argues.

GBPUSD

“Next week’s US FOMC, GDP, core PCE and ECI data are unlikely to drive Fed expectations materially more hawkish. Upside surprises, especially in the wage data, present the key risks to our near-term USD view.

Still, over the medium term, we maintain our structural concerns on EM. Our preference is to be selective in long EM positions that focus on relative value,” MS adds.

Looking forward, MS expect EUR/USD to remain within a 1.08 to 1.15 range in the near-term.

‘This content has been provided under specific arrangement with eFXnews.’

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

Free MT4 VPS plus 100% Welcome Bonus – FXGiants

Free MT4 VPS plus 100% Welcome Bonus – FXGiants(0)

FXGiants is offering its valued Trader  the exclusive 100% Maximiser Forex Welcome Bonus. Be rewarded with this unique offer and maximise your trading potential with NO limits. Link:  $35 No Deposit Bonus Promotion Link:  100% Maximiser Deposit Bonus. Link:  20% Bonus Advantage up to $2000 Available to: All new trading account Bonus offer: $35 No

$1000 Welcome Deposit Bonus Promotions – eToro

$1000 Welcome Deposit Bonus Promotions – eToro(0)

Get Forex Welcome Deposit Bonus Promotions code by eToro Forex Broker. Trade over 900 global instruments with most advance and friendly trading platform. Link:  Top Copy Trading Social Platforms Link: Up to $1000 Welcome Deposit Bonus Available to: All new account Ending Date: 31 December 2018 Bonus Offer: Get Forex Welcome Deposit Bonus Promotions code

$50 Forex No Deposit Welcome Free Bonus – ForexBull

$50 Forex No Deposit Welcome Free Bonus – ForexBull(0)

$50 Forex No Deposit Welcome Free Bonus is available to all new clients of ForexBull as well as for those who still haven’t got any previous No Deposit Welcome Free Bonuses from the company. Link:  $50 Forex No Deposit Welcome Bonus Available to: All new trading account Ending Date: 31 December 2017 Bonus offer: $50

Forex Global Demo Trading Contest 2017 – AETOS

Forex Global Demo Trading Contest 2017 – AETOS(0)

The AETOS Capital Forex Global Demo Trading Contest 2017, with weekly prizes and overall championship prizes to win! The total prize of the contest is worth $10,000*! Link:  Global Forex Demo Trading Contest Available to: All clients Ending Date: 31 December 2017 Contest offer: Global Forex Demo Trading Contest Top prize worth $10000 As one

100% Double Dynamo Bonus up to $10000 – FXPRIMUS

100% Double Dynamo Bonus up to $10000 – FXPRIMUS(0)

100% Double Dynamo Bonus Forex on up to $10,000 plus up to $4 cash back Rebate Bonus for every lot traded! Be rewarded with this incredible offer which is available for a limited time only Link: 100% Double Dynamo Bonus Available to: All New and Existing Clients Ending Date: 31 December 2018 Bonus offer: 100%

Get 25% Credit Bonus on their first Deposit – HYCM

Get 25% Credit Bonus on their first Deposit – HYCM(0)

Get 25% Credit Bonus available on your Deposits. Experience Some of HYCM New Features, Services and Offers Receive 25% Forex trading credit bonus Link:  25% Trading Bonus on your Deposits Ending Date:  31 December 2017 Available to:   New Clients only Bonus Offer: 25% Trading Bonus Available on your deposits to New Clients only. This promotion

50% Deposit Bonus and $5 No Deposit Bonus – FortFs

50% Deposit Bonus and $5 No Deposit Bonus – FortFs(0)

Up to 50% Bonus of Every Deposit and $5 Forex No Deposit Welcome Bonus. You Deposited $1000 on your account, chose a 50% bonus and got 500 extra dollars to the initial deposit amount. Link:  Up to 50% Bonus of Every Deposit Link:  $5 Forex No Deposit Welcome Bonus Link:  15% Support Margin Bonus Available

Get $30 Forex Deposit Bonus for an Article – FreshForex

Get $30 Forex Deposit Bonus for an Article – FreshForex(0)

Get $30 Forex Deposit Bonus for an Article Write an expert article about the Forex trading market to earn a $30 Forex deposit bonus to start earning from scratch and spread your ideas, thoughts. Link:  $30 Deposit Bonus for an Article Link:  $2017 No Deposit Bonus offers Link:  123% Deposit Bonus Promotion Available to: All

Get $50 Free Campaign and Trade Three Easy Steps – UFX

Get $50 Free Campaign and Trade Three Easy Steps – UFX(0)

Get $50 Free Bonus Campaign and Trade Three Easy Steps Trading is simple and it’s on UFX. Get your FREE $50 No Deposit Welcome Bonus and start forex trading. Link:  $50 Forex No Deposit Bonus Promotion Link:  100% Real Money CashBack Promotion Available to: All new trading account Ending Date: 31 December 2017 Bonus offer:

The Ultimate Forex Partners Competition – Tickmill

The Ultimate Forex Partners Competition – Tickmill(0)

The Ultimate Forex Partners Competition of winning a brand new Harley-Davidson or one of over $10,000 worth of prizes that we are offering Link:  Ultimate Partners Ride Contest Link:  $30 Forex No Deposit Welcome Bonus Link:  Forex Monthly Live Trading Contest Link:  Weekly Demo Race Trading Contest Available to: All new traders Ending Date: 31

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories