0756 GMT - Betting on EUR/USD falling remains an attractive, positive carry hedge for various economic scenarios, including the possibility of money markets pricing in earlier interest-rate cuts from the European Central Bank, say analysts at Morgan Stanley Research in a note. They maintain a long one-year EUR/USD put--a bet on it falling--at 1.07. Although eurozone economic data could beat expectations, especially with such a low bar, EUR/USD has barely reacted to any signs of this, they say. "Its correlation to local economic data surprises has fallen to effectively zero." EUR/USD trades flat at 1.0845. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
March 04, 2024 02:56 ET (07:56 GMT)
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