Morgan Stanley: International trade will support the dollar

Many foreign exchange strategists are calling for a further weakness of the US dollar because of expectations of good growth in the global economy and signs that the world's leading central banks are increasingly confident in normalizing their monetary policies and raising interest rates.
Still, greenback has its own supporters. One of the last comes in the face of analysts from the investment bank Morgan Stanley.
The bank expects some force for the dollar to come in the direction of international trade.
International trade is expected to be the topic of this year, beyond interest rates, which will continue to actively engage investor moods.
Fed's rhetoric has changed since Donald Trump became president by making a protectionist turn.
The expectation is that the new reserve manager nominated by Trump will continue to pursue a weak dollar policy to help and stimulate the US economy.
Other currencies that are more prone to downward pressure include those who are dependable on a potential change in their countries' trade relations, such as the Canadian dollar and the British pound, Morgan Stanley said.