-
USD, EUR, JPY, GBP, AUD: Outlooks For The Coming Week - Morgan Stanley
USD: Increasing Sensitivity to Inflation. Neutral. We remain medium-term USD bulls, but we continue to believe USD will struggle in the near term. The FOMC meeting this week has changed the near-term outlook as a more dovish than expected Fed has made front end yield differentials less USD supportive. We believe inflation readings will have more importance with employment bouncing back but core inflation remaining low. Should inflation start materially surprising to the upside, the Fed may need to reconsider its plan for a very muted hiking pace. EUR: Grecian Risks Remain. Bearish. We remain bearish EUR over the ... (full story)