Morgan Stanley: buy USD this week
Despite the weaker-than-expected USD NFP last week, strategists at Morgan Stanley maintain a bullish view on the US dollar. They recommend buying the greenback on dips versus all the G10 currencies.
MS points that this week's central banks' meetings will likely support the US currency. Soft inflation figures released in Europe last week (+0.4 % y/y) will make the ECB sound dovish. Meanwhile, the Reserve Bank of Australia is expected to pull the Aussie down with new verbal interventions.