According to analysts at Morgan Stanley, broader markets are heading too far into bearish territory on the EUR, as the investment bank expects a decline in the USD looking forward. Key highlights Morgan Stanley is looking for a weaker USD in the “coming weeks”. Economic data surprises coming from the US vs the G10 economies could see the Greenback drive lower. The People’s Bank of China (PBOC) is also expected to adjust their policy stance in response to the rising trade war, which could further weaken the USD. Regarding the EUR Markets are overpricing into the shortside on European political risks and growth outlooks. The European Central Bank is unable to ease further, considering bond capacity limits. A topping pattern in the USD could herald a major EUR leg higher. The EUR/USD has begun to absorb bearish news, refusing to drop below 1.1510. Regarding the JPY Morgan Stanley is anticipating another “leg higher” to 115. Constrained Japanese yields are expected to keep the USD supported against the Yen. 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 Forex today: DXY sold off from one-year highs on Trump noise FX Street 5 years According to analysts at Morgan Stanley, broader markets are heading too far into bearish territory on the EUR, as the investment bank expects a decline in the USD looking forward. Key highlights Morgan Stanley is looking for a weaker USD in the "coming weeks". Economic data surprises coming from the US vs the G10 economies could see the Greenback drive lower. The People's Bank of China (PBOC) is also expected to adjust their policy stance in response to the rising trade war, which could further weaken the USD. Regarding the EUR Markets are overpricing into the shortside on European political… 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.
