Sterling short positions surge ahead of the budget, Morgan Stanley sees bearish case to 1.30 by year-end.

Zhito Finance APP has learned that ahead of the new UK government's first budget in a month, traders are starting to increase their bets against the pound. Industry data shows that options betting that the pound will fall against the dollar in the week after the October 28 budget accounted for two-thirds of market volume this month; according to Depository Trust & Clearing Corporation (DTCC) data, bearish options against the euro accounted for as much as three-quarters. Major banks such as Morgan Stanley have also lowered their pound forecasts.