EUR

It doesn't matter what the EU exporters want. The US guys don't want a strong USD either. ;)

Strong Euro is the last thing the EU exporters want either. But which will fall the most against USD, the EUR or GBP ?

mont, xaron, elman,

i think in fact the lack of news from the euro union is damaging to the euro!!! as of now no one knows how the PIGS issue is going to resolved and how the euro zone will tackle the debt of the individual countries. the deafening silence is as damaging as dovish news.

i am euro neutral as of now, so no axe to grind here!

In the Fed minutes last week it was revealed that members were in disagreement and that some were increasingly hawkish. They spoke of how they were looking to decrease the balance sheet, and the very next day raised the rate for the discount window. All of this is sending a very clear signal that the Fed is changing from a dovish stance and will be tightening with measured moves going forward. This is very USD positive.

Hmm... even though everything looks like short now I can't imagine a big drop this week. The reason is that even Dollar bears like Chuck Butler are now short Euro. *gg*

I think the big guys are already short and we will need very bad news to push the Euro lower now for the simple reason that whatever worst cases have been priced in now. Any kind of good news could the Euro push up hard due to short covering and no new sellers. Long term big players could see those levels as good buying opportunity to scale in longs.

I can imagine that the US debts will come into focus next...

I know that I'm almost alone with that kind of thinking especially here... I still miss some Dollar pro arguments from pippedoff though beside the "fact" that the Euro is trash. ;)