Matthew Hornbach, Global Head of Macro Strategy from Morgan Stanley, said that the American banking giant has dropped its expectations of a near-term US dollar weakness while it awaits signals for a rebound.
Key quotes
“It’s no longer attractive to be positioned for a weaker dollar from here given the uncertainties around the fiscal policy outlook, the monetary policy outlook and the growth in the inflation outlook.”
“We turn neutral on the USD amid rising US fiscal stimulus odds and crowded USD sentiment.”
Looking “for signals on when to turn bullish.”
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