Foreign exchange analysts are lowering
their forecasts for the 17-nation currency at the rapidest rate this year as ECB
President Mario Draghi's borrowing rate reduction abandon one of the Euro
pillars of maintenance. Investors are dumping assets denominated in euro, as EU
officials fail to stop concern that Spain and Italy will capitulate to a debt
crisis. Ken Dickson, Standard Life Investments currency investment
director expects additional ECB monetary easing next year. Moreover, he predicts
Europe's weakness may push the common currency to around $1.20 during the first
6 months of 2012.