Morgan Stanley is no longer looking for further USD weakness, turn neutral

Author: Eamonn Sheridan | Category: News

MS had been looking for further weakness for the US dollar in the near term.

But have shifted the call now to neutral citing
  • "an ongoing regime shift in US rates" (and the Fed could begin discussing normalisation in monetary policy as early as June this year)
  • driven partly by "meaningful" fiscal expansion (The Democrat win in Georgia will result in further stimulus, MS looking for circa $1tln extra)
  • also cite crowded short USD positioning
MS say they are seeking reasons to turn bullish.  

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