Tuesday, August 2, 2011

Morgan Stanley: GBP/USD will fall to $1.49

Currency strategists at Morgan Stanley expect the British currency to fall versus the greenback by the end of the year to $1.49.

In their view, last month the demand for pound was high as investors who wanted to escape uncertainty associated with American and European debt problems perceived it as a safe haven. The specialists believe that sterling will become more determined by UK economic situation.

The pair GBP/USD rose from $1.5780 on July 12 to $1.6470 on July 29.

daily gbpusd 15-19

Chart. Daily GBP/USD

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