Calyon's 2006 forecast: Buckle up!

Expect a weakening US dollar, strengthening renminbi and steady oil prices.

'Tis the season to make forecasts - and hope no one remembers come December.

Calyon Corporate and Investment Bank's 2006 view of the road ahead is not full of doom and gloom for Asian economies, currencies or bonds in 2006. But the firm expects, bumps on the road...enough to fasten seat belts.

At the base of the bank's premise is that the US dollar will weaken over the next year. However, oil prices will remain high but relatively steady -- thanks to continued strong global gross domestic product growth, which drives oil product consumption.

The big currency story will be that China may...

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