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Jun 07 - 05:00 PM
GBP: Still Looking To Buy A Dip In EUR/GBP; AUD: Fade The Recent Bounce - Morgan Stanley
First appeared on eFXplus on Jun 07 - 03:30 PM

Morgan Stanley Research discusses GBP and AUD outlook and adopts a bearish bias on the 2 currencies. MS maintains a limit order to long EUR/GBP at 0.8670.

"GBP: Watching Domestic Politics. Bearish. While GBP shorts have increased, overall positioning is still light compared to other G10 currencies, which see a large short base against the USD, suggesting room for GBP shorts to increase further. We like buying EURGBP on dips,"MS notes. 

'AUD: Fade the Recent AUD Bounce. Bearish. AUD may find some temporary support as AUDUSD longs are unwound...1Q growth revealed housing sector weakness and falling consumption, and we continue to expect housing sector debt in Australia to be more concerning than consensus projects. We also see the labor market deteriorating, turning the RBA increasingly dovish," MS adds. 

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*Recorded in eFXplus Orders

Source:
Morgan Stanley Research/Market Commentary

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