Morgan Stanley says has turned neutral on GBP but still think the risk is for lower

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Morgan Stanley Research :

• "We turn neutral on GBP and closed our short GBP/NOK position as risk/reward for short GBP has become less attractive. That said, we think risks are still skewed to the downside for GBP as the UK faces slowing growth and the largest real disposable income hit on consumers since the 1970s. Despite this, markets are still pricing in too much policy tightening in ourview, with more than five 25bp hikes priced in for this year. Our economists expect only two 25bp hikes for this year, in May and June respectively,"
• That said, over the medium term, we think that a more cautious BoE with a focus on maintaining growth, in line with our economist's forecasts, could in fact be positive for the currency,"