Market Directions August 17, 2008 The euro has fallen 8.6% in value against the dollar in month, 4.3% in seven trading days. Currency markets are highly speculative and are not usually spoken of as having bubbles. But what else should we call a market that adjusts at this speed? The fundamental market view since the credit crisis blew up last August was that the United States economy would be punished by the combined housing, credit and financial crises. This view was responsible for the year long ascent of the euro against the dollar, or if you prefer, the fall of the dollar against all its trading partners. The US ... (full story)