My mention yesterday of watching for the Euro to have a renewed period of strength remains valid and endorsed. It is always a little difficult choosing short term entry into a macro scenario, and in this case the simple logic of buy the US dollar on the basis of strong US data, will win out for a period. It is when we reach the point of everyone who wants to buy the dollar having done so, combined with fresh foreign investment waves out of the US, that the US dollar will decline to a significant degree yet again.



The overall down move in the value of the US dollar is of course supported by the “strong dollar policy” being in fact the "orderly decline of the dollar policy”, continuing trade and fiscal deficits, and near zero yield on holding the currency. It is true that the strong rest of world economy will be feeding significant revenue streams into US corporates, but the math still favours a lower US dollar I believe. Post the initial buy USD on good US data period of course.