Morgan Stanley: The European Central Bank may not strongly protest the recent strength of the euro.

Morgan Stanley strategists said in a report that the European Central Bank is unlikely to strongly protest against the recent strength of the euro. They stated that recent comments by ECB policymakers at the Sintra conference in Portugal "have led investors to overestimate the ECB's resistance to the euro's strength." Morgan Stanley believes that the euro is currently experiencing a short-term tactical pullback towards the $1.15 range, but they expect it to rebound further in the future.