Morgan Stanley says USD momentum has eased, now think the DXY is topping out

From the latest 'FX Pulse' from the bank - in brief highlights:

• The momentum for the USD has eased and we now think the DXY is topping out
• We are buyers of EUR crosses like EURCHF and EURCAD
• The "canary" currencies like NZD, AUD, and CAD should see the bulk of their weakness next year
• we think EM currencies are in a position to recover
• Barring some specific exceptions, the driving force of the EM sell-off was the USD, which has We believe ZAR is the best candidate to position for a rebound
• GBP remains on our currencies to sell
• If USDJPY crosses above 114.50, then we should see more upside momentum
• Looking for short AUDKRW entry point