Morgan Stanley: The European Central Bank may not protest too much against the recent strengthening of the Euro.

Jin10 Data reported on July 17th that Morgan Stanley strategists stated in a report that the European Central Bank is unlikely to protest too much against the recent strength of the euro. They noted that the comments made by European Central Bank policymakers at the recent meeting in Sintra, Portugal, "led investors to overestimate the extent to which the European Central Bank would resist the euro's strength." Morgan Stanley believes that the euro is currently undergoing a short-term tactical pullback, moving down towards the $1.15 range, but expects it to rebound further thereafter.