Morgan Stanley Closes Bullish Pound Call as Budget Gains to Fade

Morgan Stanley has closed its bullish pound recommendation, noting the currency is likely to have seen its last near-term positive catalyst.

While there’s scope for a quick rally following the announcement of the UK budget on Wednesday, the gains are likely to fade, strategists including David Adams wrote in a note on Thursday. The pound-dollar pair’s appeal has taken a hit as its correlation to equity markets has fallen to zero and there’s a lack of positive local drivers on the horizon, they added.