Bearish outlook on GBP from Morgan Stanley.

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Morgan Stanley analysts provided their bearish outlook on GBP today. “Recent GBP weakness has been driven by a turnaround in the latest Brexit poll results, which we believe will remain volatile in the run up to the referendum. However, we stay bearish on GBP for structural reasons. First, recent UK economic data has remained sluggish. Second, we expect commodity prices to come under pressure, which does not bode well for GBP given its high positive correlation with commodity prices. We like expressing our view through selling GBP against EUR and USD” written in the report.


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