Now the one thing I do not understand is why the Euro (vs the US dollar) is so incredibly overinflated. I have always said that, and I will say it again; it makes no sense! No wonder Europe is in a recession, it's certainly not helping if European goods are so incredibly expensive for economies outside Europe.
A perfect example is what happened today. France's credit rating was cut by Moody's from AAA to Aa1. The result? A spike in the EUR/USD. Do you get it? I certainly don't. Keep on reading for a chart of the FXE.