Morgan Stanley have told clients they are bullish on all of the G10 this week, except for the GBP, which raises questions on the possibilities of two sides of a pair both being bullish.

Analysts at Credit Suisse have confirmed to clients that they are confident their forecast for the GBP/USD will be met.

With a good number of analysts becoming wary of chasing the Pound lower at this juncture, dollar outperformance could shift to the euro.

Keep selling into any Euro Dollar Strength argues Lee Hardman, Currency Analyst at Bank of Tokyo Mitsubishi UFJ who writes:

The perpetuation of poor risk sentiment should keep the Japanese Yen bid argues Manuel Oliveri, FX Strategist at Credit Agricole.

The euro is forecast to continue rising against the British pound, particularly if an Italian bank rescue is initiated say Morgan Stanley.

BNP Paribas see the recent decision to cut the outlook on Australian debt by S&P as justification for their call for further Aus dollar weakness.

Goldman Sachs have told clients they are forecasting a second leg of post-Brexit weakness.

GBP is at risk of undershooting its fair-value targets warn Morgan Stanley.  

The Pound should find declines slow or reverse having reached a key support area. But next week the Bank of England should trigger the next break lower.

The British Pound may rally on occasion, but don’t mistake this for a return to an upside trend say Credit Agricole.

Deutsche Bank are convinced speculators should be chasing the AUD lower and set out their justifications for the call.

The decline in the British pound against the US dollar is only going to accelerate argue Kamal Sharma and Myria Kyriacou at Bank of America Merrill Lynch.

Credit Agricole update on their latest New Zealand dollar forecasts confirming they believe the currency is overvalued.

Kangaroo bonds - Aus dollar denominated bonds issued by foreigners outside of Australia - are likely to keep the currency bid above its fundamental foundations says Charles St-Arnaud at Nomura.

Morgan Stanley are forecasting an extension of the euro / pound exchange rate rally. Hans Redeker, Head of Global FX Strategy at Morgan Stanley writes:

The British pound is unlikely to rush to post-Brexit lows, rather the move will be gradual and as such investors should position to take advantage of any bouts of strength.

Despite seeing the CAD trading on the defensive in yesterday’s session the  failure of USD CAD to close above the 100-day MAV, (1.3087) is significant, at least in the short run.

There could be some life in Sterling yet argue Goldman Sachs who see some chance of a rebound in the near-term.

The British pound is seen stabilising on currency markets at the time of writing leading many to believe that a recovery could take place.

The Australian and New Zealand dollars have rallied as risks relating to the EU referendum start to fade. But, it is not time to throw everything into a bet on an AUD and NZD recovery.

The pound / dollar exchange rate has tested 31 year lows at 1.31 but has since bounced to 1.33. However, we should expect a gradual move towards 1.30 say Credit Agricole.

Taking a look at the likely implications for the EUR/USD rate following the UK’s referendum.

The big question is how to trade sterling in the wake of the EU referendum. Silvia Ardagna at Goldman Sachs has updated clients with how she believes traders should play this market. She writes:

With the British pound putting in one of it’s strongest performance in years at the start of Referendum week some analysts are already looking at where to sell the pair.