Morgan Stanley’s looking at a lower GBP/USD next year towards 1.5400, with a bounce in EUR/GBP towards 0.8300 in the first quarter of 2013 before the cross eases back again towards 0.7800 into the year end.
The bank’s citing a loss of safe-haven status for the pound and exposure to negative fundamentals as a result of a slowdown in the Eurozone economy.
(Dow Jones story)
