Morgan Stanley recommends to sell the euro / dollar

Morgan Stanley analysts still recommend keeping a short position in euro / dollar, despite the recent recovery of the pair. According to them, most of the news from Europe continues to be negative, and therefore, they expect a further weakening of the single currency. Employees of Morgan Stanley admit that the euro / dollar is able to temporarily adjust a little higher if the ECB will announce on Thursday to maintain interest rates at the same level. But they add that, probably, the ECB will remain true to the chosen course of monetary policy and weak, if rates will be lowered on Thursday, they expect that Jean-Claude Trichet will hint at their drop in November. Current euro / dollar $ 1.3323.