Morgan Stanley: USD / EUR rate may fall to 1.17

Baku. 20 January. REPORT.AZ/ The risks for the upcoming week, in particular, the vote of the Social Democratic Party (PSD) tomorrow on the agreement on the governmental coalition in Germany, the revision of Nafta and the World Economic Forum in Davos, may weaken the euro.

Report informs, strategist of American bank Morgan Stanley Sheena Shah said.

He noted that despite the short-term strengthening, the US dollar is still in decline trend: "EUR / USD may drop to 1.17 in the scenario under which the SDP will refuse to continue the coalition negotiations in Germany”.

According to the expert, the long rally in EUR / USD and the data of the Commodity Futures Trading Commission on the positioning in the euro are favorable for correction.