Morgan Stanley's Lord Sees More Room for Euro to Fall
Bloomberg Markets and Finance
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October 06, 2026 at 06:16 PM UTC
Neutral
90% Confidence
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Key Points
- Euro-USD: Morgan Stanley forecasts Euro to fall towards 1.10, driven by US dollar strength and Euro-specific issues like increasing risk premia and lower ECB terminal rate expectations.
- USD-JPY: Morgan Stanley is long USD-JPY, expecting it to move above 160, as Japanese repatriation flows are less likely and BOJ remains dovish.
- USD-BRL: Brazilian Real is expected to strengthen further to 4.5 against the dollar, supported by potential fiscal consolidation post-election and reduced volatility.
AI Summary
Morgan Stanley's James Lord forecasts further downside for the Euro against the US Dollar, potentially reaching 1.10, due to a combination of US dollar strength and Euro-specific policy concerns. He is bullish on USD-JPY, expecting it to rise above 160, and sees continued strengthening for the Brazilian Real post-election, potentially to 4.5, driven by fiscal consolidation and reduced volatility.
Model Analysis Breakdown
| Model | Sentiment | Confidence |
|---|---|---|
| Gemini 2.5 Flash | Neutral | 90% |
| Consensus | Neutral | 90% |