Morgan Stanley with their pain trade’ take on the US dollar
This is via eFX
“The dovish Fed – discouraging USD bulls – has led to a
de-positioning move supporting the once shunned currencies. GBP, AUD and
many emerging market currencies fall into this category.,” argues Morgan Stanley…
When it comes to capital flows, other factors such as growth and
productivity differentials come into play and here the US still leads,. It
requires growth and output gap differentials shrinking.