A note from MS late last week with a set of look ahead forecasts
The bank expects further strength of yen and Swiss, lower EM and commodity currencies
- USD index to remain supported
- risk and growth outlook likely to weaken further
- further trade tensions
- Fed less likely to turn more dovish
- risk of a global recession rising
Forecasts:
Q4 Q1 2020
USD/JPY 101 (from 102 previously) 100 (100)
EUR/USD 1.15 (from 1.16) 1.17 (1.18)
EUR/CHF 1.08 (1.17) 1.10 (1.18)