MS FX strategy research made no changes this week to the current open positions and limit orders within the major FX domain in its strategic trading porfolio.
MS maintains a short AUD/USD targeting 0.6900 and long NZD/JPY with target 83.00.
MS also has milit order long EUR/USD at 1.1030 and long EUR/GBP at 0.8520
"ECB in focus: Many in the market expect a change in tone at the ECB press conference this week and EUR positioning has turned long; therefore, significant indications about tapering or no more rate cuts are required to not disappoint. EMU growth prospects should pull foreign investment, pushing up the EUR.
GBP a sell on rallies: Our economists' base case for a Conservative majority should see GBP/USD rallying marginally to 1.32 by year end. Instead, we choose to sell GBP vs. EUR, as GBP positioning is no longer extremely short and sentiment is less bearish," MS argues.
Source: Bloomberg Pro Terminal
Senan Fuchedzhiev - Trader
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