Will sterling lead the USD?

- By FX Markets Staff
- @FXMarkets_
- 23 May 2005

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Despite the recent rise in the greenback, we maintain our bearish view on the unit. While slowing global demand works initially in favour of the dollar due to related position adjustments, slowing demand will undermine financial markets' risk appetite, reducing cross-border flows and increasing the competition for global funds among countries that need capital inflows, such as the US. We view sterling, which has weakened by 2.7% against the dollar and 2.1% against the euro over the past week, as

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