Morgan Stanley: Stay long US dollar

Tuesday, 24 August 2021

Morgan Stanley with the note:

The spread of the Delta variant and developments in China have caused the summertime blues and muddied the waters of the global reflation story. Don’t get blue, sell blue eurodollar futures, stay long USD.

We discuss the relationship between a range of currencies and our policy expectation stickers (M1KEandP1KE).

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.