Storm clouds are gathering over the euro, with the currency expected to fall from the highs seen in 2009, according to Caxton FX.
The foreign exchange specialist believes fortunes could be reversed for many currencies in the New Year.
Duncan Higgins, analyst at Caxton FX, says the poor economic outlook in many parts of Europe could hit the single currency, while the dollar could see a resurgence.
"The story in the eurozone has become decidedly murky, with concerns over the credit rating of various countries within the region reaching the financial headlines in the past two weeks," he explains.
There has been a recent downgrade of Greece's credit rating, to BBB+ from some agencies, while Spain and Ireland could also see a downgrade in the near future.
The euro has been hit by the news, with its price falling 5% against the dollar in just two weeks.
Meanwhile, the dollar is likely to climb in the coming months, with high expectations the Fed will raise interest rates in the New Year boosting the profitability of holding the currency.
Meanwhile, Higgins expects sterling to remain depressed for the foreseeable future.
"In the first few months of 2010, we are not expecting the pound to push too much higher given the inherent weakness of the UK's own recovery. The credit issues surrounding the eurozone served to highlight the ongoing deficit concerns in Britain," he says.
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