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USD, EUR, JPY, GBP, AUD: Outlooks For The Coming Week - Morgan Stanley
USD: Taking a Breath. Bullish. US data remain soft as a result of seasonal factors and labor issues. On top of this, the Fed did not sound in a huge rush to hike rates at the latest meeting. This combination could lead to a USD pause ahead of payrolls. Over this timeframe, we prefer to play relative value trades and wait for dips in USD. However, we expect that growth will pick up and the Fed will hike, so we retain our medium-term bullish USD view, and would use dips to re-establish longer-term long USD positions. EUR: Remain Bearish. Bearish. We remain bearish on EURUSD and believe that it may begin to head lower ... (full story)