EUR, JPY, GBP, CHF, NZD: Outlooks For The Coming Week - Morgan Stanley

UR: Watching the ECB. Bearish.

We remain bearish on EUR, and expect diverging monetary policy to weaken the currency. In the run up to the December ECB meeting, markets are likely to focus on upcoming comments from central bank members, particularly as there are some signs of a divide over how far to go in December. For EUR to overshoot our revised forecasts, we need risk appetite to be strong so EUR is used as a funder.

JPY: Gains on Crosses Likely. Bullish.

We see scope for JPY to continue its gains and be a G10 outperformer. Expectations of easing from the BoJ continue to fall, as the central bank has pushed back the timing to reach its inflation target and data has been mixedclick source