A few months ago, I considered the Euro to be overvalued, and I looked into shorting the Euro. Good thing that E*Trade doesn’t support foreign currency trading (forex), because my prediction was wrong. Now the dollar seems to be slipping daily to new record lows against the Euro. Why? I don’t understand. The US stock market is having a good year, the US economy seems to be on recovery. And Europe? France and Germany are going to exceed the debt targets for Euro countries. Is it all about the rising US deficit? Perhaps, but don’t the largest economies in the Eurozone still have large budget deficits and huge public sectors? I’m afraid I may never understand this.