EUR/USD: Morgan Stanley's euro and dollar forecast for this week

As usual, you will find Morgan Stanley's weekly forecasts for the euro and the dollar for the week of 8 February 2016:

EUR: The strength is temporary, neutral opinion

"We are tactically bullish on the EUR despite the ECB's more or less pre-announced new actions for the month of March. The majority of these new actions is integrated into pricing, as the market currently expects a 0.1% decline in the deposit rate. We don't expect the strength of the euro to last long."

USD: Tactic pullback

"We believe the USD pullback may continue a little longer. Indeed, over recent weeks, US economic data proved weak, and NY Fed chairman Dudley has highlighted the fact that the tightening of financial conditions has an impact on the Fed's decisions. That said, even if the data can make the dollar fluctuate, it cannot in our view reverse the trend. Instead, we believe that the pursuit of capital repatriation will continue to push the dollar higher."