It’s time to sell the U.S. dollar, Morgan Stanley says

Morgan Stanley analysts, led by David Adams, recommend selling the U.S. dollar as bullish sentiment among investors may have overestimated its future growth potential. While optimism about the U.S. economy and potential trade policies under the Trump administration are driving expectations for a stronger dollar, analysts argue that much of this “good news” is already priced in. They also caution that trade policy changes may be slower and narrower in scope than anticipated.
Morgan Stanley suggests betting against the dollar by investing in the British pound (GBP/USD) and Australian dollar (AUD/USD), citing their resilience to trade tensions and historical low valuations. Price targets are set at $1.32 per GBP and $0.675 per AUD.