Morgan Stanley expects a Federal Open Market Committee (FOMC) +25bp rate hike next week

Morgan Stanley following the GDP data from the US on Thursday. The data in linked in this post ICYMI:

• Forexlive Americas FX news wrap 27 Apr: Dow/S&P as best day since January. USD mixed.

Morgan Stanley is looking for even softer Q2 data, forecasts US GDP to contract by 0.4% in Q2 2023.

On the Fed MS are still expecting a +25bp rate hike from the FOMC on May 3, but say they may well then signal a pause.