It is going to be one mother of a reversal. Every asswipe on the planet is shorting the Euro Vs The Dollar. But the mechanics of that trade involve buying Dollars and selling Euros. The FOREX accounts create digital Euros and dump them into the currency markets while hoovering up Dollars in the currency markets. I saw an article on zerohedge to mentioning that Dollars are becoming scarce. I think it is this friggin trade causing it. If it unwinds, it is instantly going to create a major disruption. Like a 10 percent down day for the dollar.
I mean realistically, there is no real reason for the Euro to be dumping unless the EU really is going to break up. It isn't. Defaults should be making the EU currency stronger as people dump debt and buy up Euros.