Morgan Stanley: Get Ready For "Super Goldilocks" Scenario

The much-ballyhooed rally in the USA dollar now “seems complete,” a Morgan Stanley FX Pulse research report opined. At a time when the US Federal Reserve is considering the beginning of the end of its more than $4 trillion balance sheet and interest rate increases are now less certain, “markets may now test if central bank reaction functions may have changed.” But global economies may trump the besieged reform agenda of the current US administration as central banks have the latitude to stay accommodative.

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USA Dollar  - Global headwinds have turned to tailwinds

As the July heat of 2014 came into focus, a base was building in the value of the US...