Morgan Stanley: short on EUR/USD
Strategists at Morgan Stanley hold a short position on EUR/USD from 1.2750 with a take profit at 1.2000 and stop loss at 1.2600.
In their view, positioning in EUR/USD is gradually moving towards neutral, suggesting more room to increase EUR shorts. Secondly, they see EUR becoming a funding currency. The ongoing global and domestic deflationary pressures should keep the European central bank dovish, weighing on EUR.
Analysts see the only risk for their trade – weak US data releases.
Chart. Weekly EUR/USD