Morgan Stanley entered a long GBP/USD.........>

CABLE: Morgan Stanley entered a long GBP/USD position at the NY close, with a

target of $1.3650 and a stop at $1.2850.

- MS reason that "the base case of a "soft" Brexit appears to be becoming more

positive as the probability that it retains customs union membership increases.

Meanwhile the risks of a hawkish BoE remain underpriced - wage growth continues

to rise in the UK while capacity pressures bite, suggesting potential inflation

pressures. GBP is most highly correlated to local rates and rate differentials,

suggesting that a hawkish shift should propel GBP higher. A key risk to the

trade is that UK economic data softens, reducing the probability that the BoE

raises rates."