Morgan Stanley Sees Euro-Pound Parity on Diverging Political Fortunes
- Bank projects common currency will reach parity with pound
- France, Germany making push toward change ‘not seen in years’
Andrew Sheets, chief cross-asset strategist at Morgan Stanley, discusses market risks and how investors should be positioning themselves. He speaks on 'Bloomberg Markets: European Open.' (Source: Bloomberg)
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A pushback against the populist movements that have threatened to destabilize the European Union will help bolster the euro for years, according to Andrew Sheets, chief cross-asset strategist at Morgan Stanley.
The U.S. investment bank raised its forecasts for the shared currency on Thursday, projecting it would reach $1.25 early next year, and trade one-for-one against the pound for the first time. This is a “multi-year call” for a stronger euro, Sheets said in an interview with Bloomberg TV’s Guy Johnson on Friday.