Morgan Stanley recommend long USD vs EUR & CAD - FOMC a "key risk" though
A snippet from MS, analysts are remaining bullish on the US dollar. This via the folks at eFX.
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- "We remain bullish on the USD and recommend long positions versus the EUR and CAD. Over time, the combination of a continued tightening in the labor market and firming inflation suggests the FOMC will eventually begin indicating that normalization is coming. With breakevens largely pricing in the Fed's 2% average inflation goal, higher nominal yields over time are likely to bring real yields higher alongside, suggesting USD strength"
- "This week's upcoming FOMC meeting is a key risk, though, and should the FOMC emphasize dovishness in spite of the firmer-than-expected inflation figure, the timing of the USD rebound may be delayed"