Morgan Stanley downgraded its outlook for the US dollar today, lowering it to neutral from bullish.
They had previously forecast an 8% rise in the Dollar index but have followed others in predicting a weaker environment following the Fed pivot.
US Dollar index
Our conviction about dollar strength has waned meaningfully,” wrote MS strategist. “US data deceleration has compressed growth differentials, US rates have fallen further compared with peers, and investors appear far from defensive based on equity returns.”
Morgan Stanley closed out a bet against the euro, suggesting short EUR/JPY instead. They are bullish on the yen this year in general (and the yen has certainly served up an opportunity for this week).
More on the call here.