Latest from Morgan Stanley's FX Pulse
Morgan Stanley don't like the recent bond volatility. Neither do they like the fact that the recent US data hasn't kept the dollar rally going
So they've scaled back on their USD exposure and say that further strong data won't be enough to restore the bullish trend and Kuroda's comment means USDJPY has lost it's status as a "clean USD bullish trade"
Despite their worries over the buck, they still expect the euro to fall and say that we have not yet seen its low point and that rate differentials and Greece will keep the euro bearish
Whether you agree or don't agree with the note, the sensible lesson to take is that they don't like the current environment so are reducing their exposure to it. That's a smart move in anyone's book and one that applies to traders of all ilk
