In a note to clients today, Morgan Stanley discusses whether Japan’s and Europe’s respective currencies are developing similar behavior. The Japanification of the Eurozone: "JPY has a tradition of behaving counter to investor risk appetite; it rallies on negative news, both foreign and domestic, and depreciates when sentiment is positive. In short, it behaves like a true global funding currency," MS notes. How EUR Becomes JPY? According to MS' view, currencies like JPY or the pre-floor CHF trade inversely to risk appetite because they have: "1) Very low interest rates compared to other countries, increasing the ... (full story)