Dollar Hedging May Push Euro to $1.30, Morgan Stanley Says

The euro’s rally is about to get another boost, according to Morgan Stanley strategists, as European investors look to hedge nearly $4 trillion of US assets.

The team led by David Adams, who has one of the most bullish euro calls on Wall Street, says an advance above $1.30 for the euro “is not a risk to be underestimated” as doubts about the dollar’s safe-haven status prompt investors to protect against further volatility. This is an even higher prediction than the $1.27 level they expect by the end of next year.