Morgan Stanley Global FX Strategy
vie eFX
Given the increased focus from Trump officials on the strong USD, we think it may be difficult to trade USD from a short-term perspective. Administration comments risk other countries turning towards a more hawkish monetary policy and pushing their currencies higher. China may already be an example of this. However, we don’t like selling USD given broadly improving data. The closing output gap should win out in the long term in pushing USD higher but, for now, we turn neutral.
USD, EUR, JPY, GBP, CHF, CAD, AUD, NZD: Weekly Outlook – Morgan Stanley
