GBP most vulnerable to global slowdown, says Morgan Stanley

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GBP most vulnerable to global slowdown, says Morgan Stanley

Sterling may be the most susceptible currency to a global economic slowdown because of the twin impact of severe fiscal austerity measures at home and reliance on European export markets that are likely to falter due to an expected deterioration in global growth, says Morgan Stanley in a report published September 1.

As the European debt crisis and spending cuts in the UK have played out this summer, the euro and the pound have continued to defy negative headlines, largely because of the support they have received from a reallocation of reserves by central banks out of US dollars. The pound has also been seen as a safe haven because of its stable political and rating outlook, bringing large capital inflows...


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