Calyon's bearish USD outlook pays off
CURRENCY FORECASTS
Daragh Maher, senior FX strategist at Calyon in London, said the bank based the decision on its view that the market was being excessively dovish about European interest rates.
"It is clear that interest rates have been a key driver to these currencies," said Maher.
He said there had been a drift away from anticipating interest rate cuts in the US, which would normally play as a dollar positive. This has, however, lost steam over the last week or two because of a more dovish slant by the Federal
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