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EUR/USD To Break Beyond Previous High At 1.1366 Targeting 1.16 - Morgan Stanley
Lower USD, higher EUR: A weaker USD looser financial conditions and the Brexit risk event out of the way have meant that there are signs of businesses starting to grow around the world. We are not saying that all is rosy and that growth rates will reach average pre-2007 levels, but we believe that the FX markets right now will respond to changes in economic circumstances and surprises. In fact, the MSCI world equity index has become more correlated with global economic surprises, as noted by our equity colleagues.Economic data divergence between the eurozone and US should help EURUSD to break beyond the previous high ... (full story)