In its weekly FX note to clients today, Morgan Stanley argues that the EUR/USD has already a top in place as the USD has turned around, completing its downward correction within a secular bull trend. The following are some of the main reasons that MS outlines behind this argument along with its latest EUR/USD forecasts. ECB keeps transmission channels open: "Risk appetite remains the key variable for judging the EUR. The EUR’s funding status suggests repatriation related inflows will occur when investors reduce risk exposure, while rallying equity markets would push the EUR lower. The ECB is primarily relying on two ... (full story)