Morgan Stanley Seeks Repeat of Winning Dollar Call: Currencies
By John Detrixhe & Morgane Lapeyre - Aug 7, 2013 5:43 AM ET
Morgan Stanley, which advised clients to sell the dollar just before it tumbled to a four-month low in June, has rejoined U.S. currency bulls on optimism that the world’s largest economy will recover faster than peers.
Morgan Stanley forecasts that the greenback will strengthen 5 percent to $1.26 per euro and 10 percent to 107 yen by year-end, making it more optimistic than the $1.27 and 105-yen median estimates of more than 70 analysts surveyed by Bloomberg.
“The trend in the dollar is clearly to the upside,” Hans Redeker, the London-based head of global foreign-exchange strategy at Morgan Stanley, said in an Aug. 5 phone interview. “The U.S. dollar is trading according to long-term return expectations of underlying assets, and that’s highly dependent on how you view the growth differential between the U.S. and the rest of the world.”
Morgan Stanley is returning to its bullish stance just as Commodity Futures Trading Commission data show traders are paring bets that America’s currency will continue to strengthen after the Bloomberg U.S. Dollar Index rose 4 percent this year, heading for its biggest annual gain since 2008.
more:
http://www.bloomberg.com/news/2013-08-07/morgan-stanley-seeks-repeat-of-winning-dollar-call-currencies.html
DO SOMETHING!
| 