Morgan Stanley(US:MS) Sou Hu Cai Jing·2025-11-27 06:15Core Viewpoint - Morgan Stanley has ended its bullish stance on the British pound, indicating that the currency has likely witnessed its last positive catalyst recently [1] Summary by Relevant Sections - Market Reaction to Budget Announcement - Strategists, including David Adams, noted that while the pound may experience a brief surge following the UK budget announcement, the gains are expected to fade [1] - Correlation with Stock Market - The correlation between the pound and the US dollar has dropped to zero, which has diminished the attractiveness of this currency pair [1] - Outlook on GBP/USD Positioning - The strategists believe that the budget announcement may lead to a final rally, primarily driven by profit-taking on hedges, but ultimately, there are insufficient reasons to maintain long positions in GBP/USD [1]