Morgan Stanley bullish on USD.

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According to Morgan Stanley analysts the Fed will keep the interest rates unchanged next week.

“We are only expecting the Fed to lower the median 2016 dot to three hikes from four currently, stressing data dependence. Should the US economic data continue to improve, labor markets continue to tighten, and financial conditions loosen with the help of ECB and BoJ policy, the balance of risk is that markets scale forward expectations of Fed tightening rather than back in the coming month, supporting the dollar” written in the report.

EUR/USD closed at 1.1146 on Friday, gaining more than 1.2% from the previous week.

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