Dollar Target Cut as Fed Set to Spend

In a note to clients, Morgan Stanley said it was cutting its US dollar target suggesting that the dollar could fall to its lowest level against the euro since December 2009. The U.S. currency is likely to reach $1.46 per euro by year-end and trade little changed at 81 yen, Morgan Stanley said in the note sent yesterday to clients.

“The market has become very sensitive about talk of further QE, and the ‘punish the printer’ theme has started to be a major theme in the foreign exchange market,” Stephen Hull, head of global currency strategy in London at Morgan Stanley, wrote in a note dated yesterday. “We have revised our currency forecasts with a weaker profile for the U.S. dollar over the forecast horizon.”

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.