Morgan Stanley targetting EUR/USD towards 0.9760

Remarks reported by eFX:

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Morgan Stanley Research maintains a bearish bias on the EUR EUR The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value Read this Term expressing that via a short EUR/USD exposure in spot targeting a move towards 0.9760.

• "Is the bearish EUR growth story fully priced in now? We don't think so. While recent news flow has been positive, we don't think it changes the fundamental picture and continue to see the euro area outlook as being fraught with downside risks," MS notes.

We detail these risks:

• Gas situation in Europe could deteriorate again: Even 40% utilization may not been enough:
• Our economists expect a technical recession in 4Q22, with risks to the downside:
• We expect less tightening by the ECB than the market
• Widening of peripheral spreads is EUR-negative," MS adds.