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 22 February 2016:

EUR: Bearish view

"We remain sellers of the EUR both tactically and structurally. In the short term, the increase in risk appetite calls for a decrease of the EUR, as the single currency has become the world's financing currency of choice. In the medium term, the euro should also remain one of the weakest of the G10 currencies, given the expectations of more easing from the ECB next month."

USD: Bullish view

"We expect other waves in the current rally of risk appetite, which should continue to support the USD against financing currencies such as the EUR, JPY and CHF. US economic data proved solid last week, with encouraging indicators for the labour market and manufacturing. However, the Fed is expected to remain on the sidelines for now given the net tightening of financial conditions since the beginning of the year."