Morgan Stanley on the prospects of the euro

Morgan Stanley analysts believe that the pressure on the single currency will resume regardless of what decision the ECB decides on rates. They note that the reduction rate of inflation at a value of 3% real interest rate fail to around -1.75%, which will trigger the sale of the single currency. However, Morgan Stanley officials added that maintaining rates at the same level as would not be able to support the euro and would nullify the recent improvement in market sentiment. According to them, in the short term we should expect a new wave of demand for U.S. currency. Current euro / dollar $ 1.3370.