Market eyes fresh dollar falls

FX Week’s twelve-month consensus forecast of 10 top banks is 1.25, as analysts queried the long-term prospects of US economic growth and investor sentiment for US assets amid a whole host of background dollar risks.

"We question the sustainability of the US economic recovery and the focus will quickly return to financing the current account deficit," said Kamal Sharma, currency strategist at Dresdner Kleinwort Wasserstein in London, who targets 1.28 for euro/dollar on a 12-month horizon.

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