Analysts at Morgan Stanley revised down forecasts for some major currency pairs by the end of the year:
- For EUR/USD – from 1.49 to 1.36
- For AUD/USD – from 1.12 to 1.01
The specialists note that euro area’s economic outlook has deteriorated as the leading indicators tend to decline, investments inflows are slowing down. As a result, the single currency is going to stay under pressure.
In addition, the concerns about global growth are strengthening that’s affecting pro-cyclical and commodity currencies.
According to the bank, demand for the greenback in the second half of the year will be rather high. However, US rising debt burden makes Morgan Stanley doubt whether American currency will be able to keep rebounding in 2012.
by FBS Holdinds