Forex focus: highs and lows of the currency see-saw So, if you've been holding off moving money from the UK to the Continent, what should you do? None of the currency specialists believes the pound will bounce back to the heady heights of the summer, when it rose to its highest level against the euro in almost four years. Instead, they believe it will continue in a fairly narrow range. Stephen Hughes, of Currencies.co.uk, thinks the two currencies will be "range bound between €1.23-€1.26 for the rest of 2012"; HiFX's Chris Towner thinks it will pivot around the "neutral territory" of €1.25; and Robin Haynes of Currency Index thinks that €1.25 is "excellent value." But this isn't an indication of a long-term trend. Despite the IMF's downgrading of our growth prospects, the UK is expected to climb out of its recession as the year comes to a close, while the eurozone is anticipated to slip back into one. Sadly, this isn't necessarily good news. As Charles Purdy, of Smart Currency Exchange, explains: "What happens in the eurozone has a significant effect on the UK economy, given the level of trade undertaken, and this has a knock-on effect on sterling." Despite believing the long-term prospects for the pound are positive, Christopher Vecchio, from DailyFX, doesn't believe the UK can escape the backwash from the eurozone troubles: "There's little chance the British economy decouples from the eurozone: it is one of Britain's top trading partners. Meanwhile, as Hughes says, "crisis in Europe means the dollar retains safe-haven status." America's challenges are twofold: the outcome of the presidential election, and the looming "fiscal cliff" - a combination of huge spending cuts and the ending of tax cuts, expected to reduce US growth by 3pc in 2013. Mitt Romney's besting of Obama in their first TV debate certainly helped. Cook says: "The dollar has gained on the belief that a President Romney would be in office at the same time as a Republican Congress and therefore would have a lot easier time trying to pass legislation to avoid the upcoming fiscal cliff." This is not necessarily bad news for the dollar. "Political uncertainty in the world's greatest superpower is always going to be a recipe for volatility," says Vimal Popat of Market Securities, but "it is the US that will likely benefit as the remainder of the market seeks refuge in the somewhat steadier dollar." So, in this year's currency race to the bottom, who will have the dubious honour of winning is still an open question.