Take this for what its worth.
CBCNW this morning had an analys from I think RBC Capital talking about the dollar. The question was raised that some anylysts have pegged the dollar to go as high as 1.25 and the RBC guy said he stopped betting when the dollar hit 1.10.
I wouldnt be surprised now if it did go that high. I dont think the fundamentals are there for that but when did the financial markets ever worry about fundamentals