Morgan Stanley: Buys USD/JPY and EUR/USD on dips

17.07.2017 / 04:15

Rating:

In its strategic portfolio this week, Morgan Stanley FX strategy research becomes a buyer of USD/JPY dips, remains a buyer of EUR/USD setback and cancels its exposure to buy EUR/GBP dips.

MS express that via adding a limit order to long USD/JPY at 112.50 (filled earlier on Friday), maintaining its limit order to long EUR/USD at 1.1200 and cancelling its limit order to long EUR/GBP at 0.8520.

USD/JPY: long at 112.50 - "Unusually , the USD has ignored the recent rise of the USD term premium, suggesting liquidity conditions are ample. The risk support should allow a limited window for the pair to rally,"

EUR/USD: long limit order at 1.1200 - " The ECB will meet on Thursday and its communication should underline gradualism. This is why see the EUR trading within a corrective pattern that is time consuming. As we see it, the long-term EUR outlook is still bullish, helped by data and yield differentials moving away from previous extremes, increasing signs of deeper reform momentum and fiscal integration. A EUR/USD setback into the 1.12 handle offers a buying opportunity, in our view."

Source of the graph: Bloomberg Pro Terminal

Trader - S. Fuchedzhiev

Varchev Traders

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.

WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.

Varchev Finance

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Morgan Stanley: Buys USD/JPY and EUR/USD on dips

London

Universal numbers