Morgan Stanley recommend a long.........>

EURO-DOLLAR: Morgan Stanley recommend a long EUR/USD position, at market, with a

target of $1.1800 and stop of $1.1170.

- Morgan Stanley write "we like buying EURUSD this week. Optimism on growth in

the rest of the world rebounding should weaken USD and help EUR. Rebounding

China data should filter through to better Eurozone data over the coming months.

This could come through in this week's German April ZEW survey and Eurozone

April flash PMI, helped further by easing Brexit concerns and generally stronger

equity markets. While EUR offers low funding costs, it is the EUR-funding

related short positions which could push EUR higher as data improve. Over recent

days, German 5-year breakeven rates have caught up with the rise in US breakeven

rates, and EMU sovereign spreads have come in. This meets a market that is

positioned very short EUR and very long USD. The risk to this trade is a

downside surprise in Eurozone April data."