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Morgan Stanley Shifts to Bullish USD Outlook, Targets 104 by Mid-2027
According to Morgan Stanley on September 26, the bank upgraded its U.S. dollar outlook from bearish to bullish, forecasting the dollar index will rise to 104 by mid-2027, while EUR/USD may decline to 1.10 from current levels around 1.14. The bank cited sustained U.S. rate advantages from Federal Reserve tightening expectations, economic resilience, and elevated energy prices as key supports. The 10-year Treasury yield remains elevated at approximately 5.2%, with the dollar index trading near 101
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