Morgan Stanley Fixed-Global Macro Strategy Global FX Positioning Short EURJPY ...-110245679

M UpdateGlobal Macro Strategy | GlobalGlobal FX Positioning: Short EUR/JPY and EUR/CHF Preferred Positions in G10Morgan Stanley & Co. LLCZoe K StraussStrategist Zoe.Strauss@morganstanley.com +1 212 761-0407 Andrew M WatrousStrategist Andrew.Watrous@morganstanley.com +1 212 761-5287 Morgan Stanley & Co. International plc+David S. Adams, CFAStrategist David.S.Adams@morganstanley.com +44 20 7425-3518 Wanting LowStrategist Wanting.Low@morganstanley.com +44 20 7425-6841 Dominic J KrummenacherStrategist Dominic.Krummenacher@morganstanley.com +44 20 7425-9781 In the week ending Friday, September 6, options pricing data indicate that investors added long JPY and EUR positions, and reduced long NOK (versus EUR) and NZD positions. In the futures market, investors reduced short CAD and NZD positions, while they increased short CHF and USD (DXY) positions in the week ending Tuesday, September 3. Overall, options data suggest that tactical investors are most long GBP and CHF, while being short USD (DXY) and NOK (versus EUR). Positioning in the futures market is long EUR and GBP, and short CAD and CHF.Exhibit 1:Source: DTCC, Bloomberg, Morgan Stanley Research; Note: Using options that were traded in the past three months and expire in the coming one month. Notionals are delta-adjusted. Data as of Friday, September 6. For methodology, see Assessing FX Positioning with Currency Options.Exhibit 2:Source: DTCC, Bloomberg, Morgan Stanley Research; Note: Using options that were traded in the past three months and expire in the coming one month. Notionals are delta-adjusted. Data as of Friday, September 6. For methodology, see Assessing FX Positioning with Currency Options.Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision.For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report.+= Analysts employed by non-U.S. affiliates are not registered with FINRA, may not be associated persons of the member and may not be subject to FINRA restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. September 9, 2024 04:41 AM GMTM Update2In the week ending Friday, September 6, options pricing data indicate that investors added long JPY and EUR positions, and reduced long NOK (versus EUR) and NZD positions ( Exhibit 3 ). In the futures market, investors reduced short CAD and NZD positions, while they increased short CHF and USD (DXY) positions in the week ending Tuesday, September 3 ( Exhibit 4 ). Exhibit 3:Source: DTCC, Bloomberg, Morgan Stanley Research; Data as of Friday, September 6. For methodology, see Assessing FX P