Shorts have made a lot of money on the euro so far, but keep going, and in fact, weigh into the trade, says Morgan Stanley’s Emma Lawson.
Euro currency risks keep getting worse and the euro will crack further.
Morgan Stanley: As a result of this, our conviction on short EUR positions has increased. We increase the weight of our short EUR/USD trade to 25% of the portfolio. The ongoing events in Greece increase the strains in the euro area, and the potential for contagion. This is likely to continue to weigh on EUR.