How we learned to stop worrying and love the dollar

How we learned to stop worrying and love the dollar

Interest and exchange rate forecast

Economic Analysis

11 March 2013


The US sequester, compared by Ben Bernanke to the nuclear bomb that was inadvertently detonated in the movie "Dr Strangelove", came into effect on March 1st. The sequester is a series of cuts designed to reduce spending by $1.2 tn over a decade. Even so, we have revised our forecast for the dollar, and now expect a stronger profile against the pound and euro. This reflects the relative strength of America's private sector, evidenced by another set strong labour market data earlier today.

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