Any "weakness" in the Japanese or Euroland economies is immediately translated into dollar strength..... But why is that? Does a weak economy in Germany really mean that the dollar is a better currency?
The great global boom that was started by Greenspanomics is over..... Weakness in demand is a global phenomenon. It's not confined to Germany or Europe or Japan.
The China Glut is going to change everything....China's hoard of dollars is becoming a geo-political bargaining chip of some importance.
The real way to play the currency market is to go to commodities ASAP....and avoid paper assets in all of their forms.