Morgan Stanley: Adjusts USD risk skew to neutral; Recommends long JPY ...Middle East

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Morgan Stanley: Adjusts USD risk skew to neutral; Recommends long JPY
Morgan Stanley shifts its risk outlook on the USD to neutral and recommends going long on JPY against the USD and other risk-sensitive currencies amid heightened concerns of a hard landing.Key Points:Risk Skew Adjustment:Morgan Stanley adjusts its risk skew on the USD to neutral in light of ongoing market turbulence and hard-landing fears.Market Conditions:The current FX market is characterized by a “defense” regime, which may persist and potentially lead to a future USD bear market.Long JPY Strategy:Historical trends indicate that the most effective trades during defense regimes involve being long on JPY, both against the USD and especially against risk-sensitive currencies.Conclusion:Morga

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