Barchart: Dump the U.S. Dollar cautions Morgan Stanleyđ¨
The investment bankâs analysts, however, said they believe âmuch of the âgood newsâ for USDâ is in the price already, with investors having âlargely internalized the âUS outperformanceâ narrativeâ that is driving the value of the dollar up.
Morgan Stanleyâs analysts said they believe investors may also be âoverestimating the speed, breadth and magnitudeâ of the shifts to U.S. trade policy brought in by Trumpâs administration, which begins Jan. 20, 2025.
âWhile trade policy announcements could come relatively quickly, their implementation is likely to be slower and their scope narrower than many investors seem to expect, with trade restrictions largely focused on China,â the analysts said.
The analysts said investors can now bet against the U.S. dollar by buying AUD/USD AUDUSD or GBP/USD GBPUSD.