Looking beyond US interest rates

CURRENCY FORECASTS

Merrill Lynch has surged up the one-month forecasts rankings, coming top this week, with a slightly different take on the causes of dollar weakness.

"The world has started to develop in line with a number of key themes we identified in November as part of our 2006 'Year Ahead' themes," said Jason Daw, senior G10 FX strategist at the investment bank in New York. "It is likely that the sources, or causes, of US dollar weakness we were looking for were different relative to others."

The bank's 2006

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