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Forex pairs in this Article » GBP/USD (Guatemala) - Strategists at Rabobank said the USD was thrown a curve ball by the release of the weaker than expected US December labour report last week, but it is still one of the best performing developed world currencies this month.

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“Only the JPY and the NZD have whittled out gains vs. the greenback so far in January”.

“At the start of 2012 and 2013, optimistic market forecasts about the outlook for the USD turned sour as US growth failed to live up to expectations. That said, the US recovery is the most advanced in the developed world”.

“The economy has expanded for ten consecutive quarters, albeit often at a lacklustre pace. On the back of simulative monetary policy, the pace of US growth is widely expected to hasten in the By the end of this year we expect the USD to have strengthened to EUR/USD 1.28 and USD/JPY 112.”

“We also expect that GBP/USD can edge below 1.60.year ahead. Our forecast is for a growth rate of 2.8% in 2014 up from 1.9% in 2013”.

“Even though the continuance of QE from the Federal Reserve should limit the pace of the dollar’s gains, we maintain the view that the greenback can move to firmer ground and is likely to be one of the best performing developed world currencies during 2014”.
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