The release of the most recent US net international investment position (NIIP) data for 1Q demonstrates both that the stock of US assets has helped make years of previous trade deficits tolerable for the USD, and that longer-term fundamentals for USD upside are still in place, notes Bank of America Merrill Lynch. "Ironically, bouts of USD strengthening since the crisis, compared to when the EUR-USD was around 1.60 in summer 2008, have worsened the NIIP, especially over the last year. Still, the NIIP has helped to effectively smooth over years of previous indebtedness. The diminished impact from previous deficits is ... (full story)