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EUR, JPY, GBP, CHF, AUD, CAD: Weekly Outlook - Morgan Stanley
EUR: Draghi’s Time to Shine. All eyes will be on the ECB this week, as front end rates have been a key driver of the currency. We expect further rate cuts from the ECB, as well as an increase in QE. Removing the ‘floor’ on the deposit rate should open up scope for even more easing in the Euro Area, which should add to EUR weakness. Indeed, this would make EUR even more attractive as a funding currency. JPY: Gains on Crosses Likely. Bullish. We remain bullish JPY. Despite surging front-end rates in the US, USD/JPY has only reluctantly moved higher. Declining AUM in Japanese pension funds should provide ... (full story)