Bullish US dollar stance pays off
Naeem Wahid, currency analyst at HBoS in London, said the forecast was driven by expectations that the US Federal Reserve would continue tightening monetary policy this year.
With the Fed tightening by 25 basis points every meeting since June 2004, and the European Central Bank on hold until December last year, US interest rates have risen above those in the Eurozone.
"This left EUR/USD under severe pressure throughout 2005," he told FX Week. "The improvement in the relative cyclical support
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