FXstreet.com (Barcelona) - According to Jane Foley, Senior Currency Strategist at Rabobank: "We have lowered our forecasts for the EUR across the board this month". However, as the analyst explains: "While we see risk of EUR/USD dipping to the 1.20 area on a 1 mth view on the back of ‘implementation risk’ associated with the political measures meant to tackle the crisis. we continue to see scope for the USD to come under pressure at the end of the year as the market contemplates the risk that the Fiscal Cliff could send the US economy into double dip recession. As a consequence we anticipate that EUR/USD will clamber back to the 1.25 area on a 6 mth view."

"In essence the EUR and the USD will both continue to battle against weak domestic factors and further choppy range trading in EUR/USD could be the result," she concluded.