Dollar Bounce: Key Regional Implications

Last week, we suggested that the inflationary pressures that have been sweeping the Middle East and North Africa region may be abating somewhat, potentially allowing Gulf states to get away with leaving their currencies unchanged. Now, our view of a correction in both oil prices and the US$/EUR exchange rate appears to be playing out, adding weight to this theory. Either a Fed cut on Tuesday or an ECB hike on Thursday could derail our view, of course, but even if this is the case, we maintain our end-year forecast of

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