Morgan Stanley's Trade of the week
GBPJPY is on the Morgan Stanley hit list this week and they advise shorting it
"With risk appetite declining and a range of risk events at year-end that could trigger higher FX volatility, we like to short GBP this week. The UK's dependence on the financial sector makes the currency vulnerable to changes in risk appetite, as the Exhibit shows."
They say that their economists are expecting UK wages data to disappoint as a supporting factor for the short call, while JPY should benefit from any risk of moves
The UK labour market report is Wednesday and wages will be the main focus
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