We remain short EUR/USD, targeting 1.14 – Morgan Stanley
|Morgan Stanley (MS) reiterates its bearish bias for the EUR/USD in the latest analytical note published on Wednesday.
The US bank highlights the European Central Bank’s (ECB) ‘transitory’ consideration to the inflation fears exerting downside pressure on the Eurozone nominal and real yields and weighing on the regional currency.
“At the same time, Eurozone data have also been missing market expectations lately, consistent with our economists' projection of growth momentum in the bloc moderating in 4Q,” said Morgan Stanley.
The MS adds, “This stands in contrast with the acceleration in US growth that our economists are expecting, which should also put downward pressure on EUR/USD.”
Read: EUR/USD Price Analysis: Further upside hinges on 1.1670 breakout
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