FXStreet (Łódź) - The eFXnews team note that Morgan Stanley sees EUR/USD standing at 1.31 at the end of 2014 and the downward move continuing in 2015 towards 1.24.
"'Indeed, we believe relationships established over the past two years between the EUR and financial markets have already started to break down, leaving the EUR exposed to the underlying bearish fundamentals,' MS argues."
"'Private investor flows into peripheral bonds, equity markets, and central bank diversification will be declining sources of support for the EUR in our view. The increased potential for currency hedging of European assets in an environment of rising volatility is another EUR negative,' MS adds."
"In line with this view, MS maintains a short EUR/USD position in its medium-term portfolio from 1.3620, with a revised profit-stop at 1.35, and a target at 1.31."
"Short-term, MS looks to use any EUR/USD rebounds to add short positions via a limit order at 1.3480, with a stop at 1.3580, and a target at 1.31."
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