EUR/USD: Morgan Stanley reveals its forecast for this week (28 March 2016)

As it does every week, Morgan Stanley gives its weekly forecasts for the euro and the dollar for the week of 28 March 2016:

EUR: Structural weakness, neutral opinion

"If the US economic data improves as we expect it will, US rates should increase. Meanwhile, the ECB's QE program should continue to weigh down on European rates. Both the growth differential and the rate differential are bearish factors for the EUR. In addition, the currency faces political risks, which should also add some pressure. "

USD: The rise remains, bullish view

"We believe that the current drop in the USD will breathe its last breath. Catalysts for a return to a higher USD will be found in any good US stats, which will enable us to anticipate further monetary tightening this year."