In a note to clients today, Morgan Stanley discusses the current drivers of the EUR projecting the path for the single currency over the coming weeks. "European asset market outperformance has been a theme since the beginning of the year and helps to explain EUR’s relatively robust performance despite the increasing market expectations for further unconventional monetary policy measures," MS argues. The major EUR driver: "We find that EUR is now most closely correlated to the developments in peripheral eurozone asset markets. Indeed, excluding German portfolio flows from the total European flow data provides a much ... (full story)