"Risk on, risk off" won't do it anymore as the 60-day correlation between the euro and the...

|By:, SA News Editor

"Risk on, risk off" won't do it anymore as the 60-day correlation between the euro and the S&P 500 - hitting an astounding 0.91 in November - has collapsed to 0.58 as stocks move higher while the currency gives up ground. Believing the euro has moved from an asset to "a liability currency," Morgan Stanley sees both the correlation and the euro continuing lower.