Morgan Stanley Fixed-Global Macro Strategy Global FX Positioning USD Positionin...-109345175

MUpdateGlobalMacroStrategy|GlobalGlobalFXPositioning:USDPositioningMovesClosertoNeutralMorganStanley&Co.LLCZoeKStraussStrategistZoe.Strauss@morganstanley.com+1212761-0407AndrewMWatrousStrategistAndrew.Watrous@morganstanley.com+1212761-5287MorganStanley&Co.Internationalplc+DavidS.Adams,CFAStrategistDavid.S.Adams@morganstanley.com+44207425-3518WantingLowStrategistWanting.Low@morganstanley.com+44207425-6841DominicJKrummenacherStrategistDominic.Krummenacher@morganstanley.com+44207425-9781InstitutionalInvestorGlobalFixedIncomePollisnowopen.Wehopeyouhaveenjoyedourresearchoverthepastyearandappreciateyoursupport.Requestyourballot.IntheweekendingFriday,July19,optionspricingdataindicatethatinvestorsaddedlongUSD(DXY)positions,andincreasedshortAUDandNZDpositions.Inthefuturesmarket,USDshortswereaddedagainstGBPandJPY,whileinvestorsincreasedshortNZDandCADpositionsintheweekendingTuesday,July16.Overall,optionsdatasuggestthattacticalinvestorsarelongGBPandEUR,whilebeingshortNOK(versusEUR)andSEK(versusEUR).PositioninginthefuturesmarketremainslongEURandGBP,andisshortCADandCHF.Exhibit1:Source:DTCC,Bloomberg,MorganStanleyResearch;Note:Usingoptionsthatweretradedinthepastthreemonthsandexpireinthecomingonemonth.Notionalsaredelta-adjusted.DataasofFriday,July19.Formethodology,seeAssessingFXPositioningwithCurrencyOptions.Exhibit2:Source:...