Morgan Stanely : "What can we expect from the main currencies in the current week

USD - The verbal intervention of the president of USA are a danger for the USD, but only in shot-term period.

EUR - More likely bearish. Until we do not see change in the monetary policy of ECB , we cannot expect significant pricening of the EUR. Furthermore we are expecting political unstability in Europe, because of the upcoming presidental election in France, councelor in Germany and new presidental election in Holland.

JPY - The besh short pick. Extremely loosen monetary policy from BoJ , which is strongly negative for JPY. Fot the moment JPY manages to hold positions because of expected political unstability in Europe and Yen is going to be used as s hedging instrument. But after the election... expectations for JPY is to be among the weakest currecies.

GBP - More likely bullish. The economy in he island is strong, inflation is going up but remains in scope, CPI is high, We are looking for good levels for new buy at GBP/USD.

CAD - We are expecting a decline of CAD. First of all the market did not priced the unwilling of the central bank to raise rates. Second, Canada isn't protectionaly toward it's currecty, which is bad for the CAD and the economy itself. After the second read of the NAFTA agreement, if the outcome is bad for Canada, we will see significant selling of CAD.

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