Question

Spot USD = .5000 GBP Spot USD = 80 Yen US Government One Year Yield =...

Spot USD = .5000 GBP
Spot USD = 80 Yen
US Government One Year Yield = 2.2%
US Inflation Rate = 1.2% pa
Great Britain Government One Year Yield = 1.8%
Japanese Inflation Rate = 2.4% pa

Outline how the USD is likely to change against the GBP and the Yen in the next year.

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