Morgan Stanley MS +1.14% cut its forecasts on commodity-linked currencies Tuesday amid deterioration in global growth indicators in recent weeks and more cautious policy response. Most notably, Morgan Stanley cut its forecasts for the Australian, Canadian and New Zealand dollars against the U.S. dollar. It also cut its view on the U.K. pound against the U.S. dollar. "The weakening of growth leading indicators is currently being met by a more cautious policy response globally," Ian Stannard, Morgan Stanley's head of European FX strategy wrote in a research note. "Declining growth indicators and a muted policy response are likely to leave the high-beta currencies in a vulnerable position, in our view, as policy measures are unlikely to be enough to lift risk appetite, but instead will likely undermine support for currencies where policy is eased further."
No comments:
Post a Comment