Analysts at Morgan Stanley recommend going long on the euro against a basket of currencies, especially the USD, CHF, GBP and SEK. The bank, however, warns of the downside risks to the EUR rally. Key quotes “The recent EU debt proposal means that some of the risk premium for EU break-up risk which has been embedded in European assets since the eurozone debt crisis will abate. The creation of a new large and liquid (likely), higher-yielding AAA asset will attract inflows from real money investors and reserve managers alike and support EUR higher. We expect the EUR rally to come in stages – initially positioning and sentiment adjustment (no longer bearish) followed by active allocation to eurozone assets via equities as growth picks up. The key risks for the view are: Trade tension escalation creates safe-haven demand for USD. Eurozone recovery disappoints. The base case is to 1.20 by Q2 2021. ‘Bear’ case is for 1.1140 while the ‘bull’ case is for 1.2600. “ FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next BOJ Summary of Opinions: Economy under pressure from virus fallout but showing some signs of bottoming out FX Street 2 years Analysts at Morgan Stanley recommend going long on the euro against a basket of currencies, especially the USD, CHF, GBP and SEK. The bank, however, warns of the downside risks to the EUR rally. Key quotes “The recent EU debt proposal means that some of the risk premium for EU break-up risk which has been embedded in European assets since the eurozone debt crisis will abate. The creation of a new large and liquid (likely), higher-yielding AAA asset will attract inflows from real money investors and reserve managers alike and support EUR higher. We expect the EUR rally to come… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
