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3 Jul 2015
Morgan Stanley: Where is the next USD up-leg? – eFXnews
FXStreet (Barcelona) - The Research Team at Morgan Stanley, believes that falling EUR and projected rate hikes in the US will boost the USD versus EM and commodity currencies, and maintain a year-end target for AUD/USD at 0.68 and USD/CAD at 1.34, as noted by eFXnews.
Key Quotes
"First, the weaker EUR could reallocate global manufacturing activity toward the more commodity-efficient EMU. Second, rising US rates increase the return on riskless assets, steering investment flows away from EM, dampening local growth and implicitly demand for commodities," MS clarifies.
"The next USD leg up should mainly develop against EM and commodity currencies, in our view," MS projects.
In line with this view, MS year-end targets for AUD/USD, and USD/CAD are currently at 0.68, and 1.34 respectively.
This content has been provided under specific arrangement with eFXnews.
Key Quotes
"First, the weaker EUR could reallocate global manufacturing activity toward the more commodity-efficient EMU. Second, rising US rates increase the return on riskless assets, steering investment flows away from EM, dampening local growth and implicitly demand for commodities," MS clarifies.
"The next USD leg up should mainly develop against EM and commodity currencies, in our view," MS projects.
In line with this view, MS year-end targets for AUD/USD, and USD/CAD are currently at 0.68, and 1.34 respectively.
This content has been provided under specific arrangement with eFXnews.