On Monday (13:50 BST) Morgan Stanley....>

EURO-DOLLAR: On Monday (13:50 BST) Morgan Stanley recommended buying EUR/USD at

market with a target of $1.2100 & a stop at $1.1500.

- Morgan Stanley noted that "EUR/USD has rebounded from its August lows and the

rally looks poised to continue. EUR bears are largely focused on ongoing Italian

political uncertainty and the exposure of European banks to EMs but we argue

both of these risks are overblown. The eurozone's 3.5% current account surplus,

meanwhile, suggests that rising asset volatility should be EUR positive as the

foreign investments deployed abroad, largely in the US and in risk assets, lose

value and liquidation incentives increase. Investors are net long USD and short

EUR, suggesting further upside momentum as positioning shifts. Chairman Powell's

dovish Jackson Hole speech should weigh on USD as well. We also argue that USD

weakness may be furthered by China's re-establishment of its countercyclical

factor in its RMB fixing, which may support CNH and thus put downward pressure

on USD. Key risks to this trade include a dovish ECB response or weakening in

Eurozone data, weighing on the EUR."