Morgan Stanley shifts to a bullish stance on the US dollar, with high yields set to continue weighing on global risk appetite.
48 minutes ago
Morgan Stanley has adjusted its previously bearish outlook on the U.S. dollar, forecasting that the greenback’s strength will persist through mid-2027. The bank projects the U.S. Dollar Index will rise to 104 by then, while the euro could fall from its current level around $1.14 to $1.10 against the greenback. The report cites expectations of further Federal Reserve rate hikes, U.S. economic resilience, and persistently high energy prices as factors that will sustain America’s relative interest rate advantage and continue to underpin the dollar. This outlook aligns closely with recent market conditions. On September 25, the 10-year U.S. Treasury yield remained near the 5.2% mark, with the U.S. Dollar Index trading around 101. While U.S. stocks stabilized at the open on optimism over artificial intelligence, and bitcoin hovered around $84,900, elevated yields continued to weigh on valuations of risk assets. Morgan Stanley had earlier revised its Fed rate path to include two 25-basis-point hikes in December this year and March 2027, lifting the federal funds rate range to 4.25%-4.5%, which is likely to be maintained through 2027. For the foreign exchange market, this means the U.S.’s interest rate advantage over other major economies will be slow to narrow. The report also flags European political risks as an additional headwind for the euro, including the French presidential election in spring 2027 and electoral risks in Germany and Italy. If the euro’s risk premium continues to rise, it will work in tandem with the U.S. interest rate advantage to boost the dollar.
Bitget hacker withdraws $1.23M in ETH from Binance, consolidates funds in single wallet
10 minutes ago
Xie Jiayin will host a community live stream with Gracy Chen this Monday to discuss the security incident and answer questions from the community.
10 minutes ago
Fraudsters impersonate Bank of Korea Governor Shin Hyun-song to set up investment scam accounts, with illegal stock recommendation groups still active.
10 minutes ago
Five institutions including Bullish have formed an alliance to promote the direct linkage between tokenized stocks and shareholder registers.
10 minutes ago
Bitget will resume withdrawals in a phased, orderly manner starting September 28.
10 minutes ago
Yuga Labs: ERC 721C or 1155C standard NFTs may temporarily not be claimable via the NFT claim website.
10 minutes ago
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