Morgan Stanley is out with its 2016 FX outlook and top 10 trades. The following are the key points in MS' outlook along with the list of its top 10 trades and their related rationales. FX outlook: The Framework: "The JPY should join the USD in outperforming relative to its G10 peers and most of EM, in our view. Repatriation flows have pushed USD higher, as EM portfolio outflows have led to EM weakness. Going forward, deleveraging-related EM outflows should allow a bigger degree of differentiation. Unlike the Fed tightening cycle that began in 2004, higher US rates will likely weaken EM currencies. Low local ... (full story)