Morgan Stanley entered a short CHF/NOK........>

FOREX: Morgan Stanley entered a short CHF/NOK position at the NY close, with a

target of NOK 7.9000 & a stop at NOK8.7500.

- MS believe that "CHF/NOK looks poised to fall in the near term. Recently,

EURC/HF has been driven primarily by concerns about Italy's fiscal position and

EM volatility, which makes sense given most of Swiss investors' portfolio assets

are held within Europe. A temporary stabilization in EM concerns and the

continued benign news flow relating to the Italian budget situation should keep

CHF under pressure. NOK looks increasingly attractive as Brent crude continues

to rise, hawkish rhetoric from the Norges Bank is likely to continue, and its

current account surplus renders it relatively well supported in a

rising-volatility, declining-liquidity environment. Key risks to the trade

include a deterioration in the European outlook, supporting CHF, and declining

oil prices."