Rabobank - " In our view EUR/USD will also end the year moderated higher (around EUR/USD1.35). Even though we see a significant chance of the ECB cutting rates again this year which is currency negative, the EUR in 2012 proved itself to be very sensitive to sentiment regarding the coherence of EMU. The market is still very short of the EUR, but in H2 2012 confidence in the future of EMU was strengthened allowing the EUR to reclaim ground. We expect the EUR shorts will continue to be eroded gradually this year on our assumption that confidence in the future of EMU builds. That said, we do expect pit-fall and periods of EUR weakness along the way. On a 3 mth view we have pencilled in a dip to EUR/USD1.28 with the USD then underperforming moderately for most of the rest of the year."