We didn't see the big increase in Federal Reserve interest rates. I think that surprised a lot of the market.

The risk is that euro/dollar still heads lower into Wednesday first due to negative press surrounding the German election,

The world is coming to a view that the Fed is going to provide more liquidity and interest rates will probably (peak) around 4 percent,

The U.S. dollar is being held firm by short-term rate expectations and until there is some sign of visible weakness in the U.S. housing market, or receding inflation expectations, then euro-dollar will likely remain under pressure,

The U.S. dollar is being held firm by short-term rate expectations and until there is some sign of visible weakness in the U.S. housing market or receding inflation expectations, euro-dollar will likely remain under pressure,

Because of Katrina we will have a pause in September. The aftermath of shocks is still not appreciated and oil prices are still high. The effect is that with the background of structural problems and (losing cyclical support) the dollar is in a phase where it should weaken.