EUR/USD: weekly forecast for the week of 25 April 2015 (by Morgan Stanley)

Like every week, Morgan Stanley gives its weekly forecasts for the euro and the dollar for this Monday, 25 April 2016:

EUR: Expect a range after the ECB, neutral opinion

"We maintain our view that the EUR will evolve in a range after the flat ECB meeting last week. The ECB made no specific comments regarding the exchange rate, but we expect the ECB to act if the EUR/USD moves too much compared to its current prices. Moreover, as the economy appears to have been solid in Q1, leading indicators point to a more sluggish recovery in Q2, and the risks of a Brexit and the rise of populism in Europe should also limit the rise of the euro. We remain bearish in the long term."

USD: The dollar remains sold, bearish opinion

"The cyclical rebound in Chinese growth supported appetite for global risk. In this environment, low US yields are not attractive and the downside pressure on the USD should continue. This week, the most important event will be the FOMC meeting. Recent mixed US data indicates there is little chance that the Fed will become more hawkish and the USD should therefore remain under pressure."