Morgan Stanley Says Dollar Bull Run Has Ended, Time to Sell
- Greenback strength has peaked at current levels, Redeker says
- Widening credit spreads, falling equities will bruise currency
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The dollar’s bull run has ended and it’s time to sell the currency, according to Morgan Stanley.
“We believe the USD has reached its peak at around current levels,” Morgan Stanley’s global head of FX strategy Hans Redeker wrote in a note. “The USD may weaken as credit spreads widen, equity prices fall, and sovereign bond yields also begin falling amid disinflationary pressure and falling oil prices.”