It is time to buy EUR/USD, Morgan Stanley says, as it looks for a rally targeting 1.21 and 1.2270. Recent improving eurozone economic data has helped the U.S.-EMU "economic surprise index divergence" to narrow, MS says. "We see our four-factor USD scorecard turning decisively USD bearish," it says. It also cites the People's Bank of China "leaning against CNY weakness," as well as a high number of market bets on dollar gains, raising the potential for those positions to be unwound. EUR/USD rises to a 3.5-week high of 1.1783. - via WSJ