"What if the dollar continues to fall against the euro? Just a what-if..."
astral... FWIW I reckon the USD/Fx overvaluation problem lies with China, Korea, Mexico etc. It's the emerging market countries where there seems to be a significant US trade imbalance. If the USD corrects say 20% then this is where it will be felt most.
I don't think there is much of a trade imbalance with the EURO region.
Further, a EURO in the 1.20 - 1.30 range is pretty much where it has been for the past decade, long before the USD had large trade imbalance issues.
Check EURO 'purchasing power parity' (ppp) at the OECD website or...
If anything the EURO is over 'ppp' at 1.25 and 1.13 is a more neutral figure.
On a micro level the evidence is obvious in the soft sales figures of NTZ high end European manufactured seats. The US consumer is so price sensitive because he is already so leveraged.
No one has mentioned this yet, but its glaring to me... NTZ is opening their branded stores everywhere in the world except the USA. They especially concentrate their store opening efforts on strong robust growth economies.
NTZ recognise they have the capacity to sell quality medium/high end to the other 70% of the world thats not the USA (i.e. where the consumer is not as leveraged).
This basket of currency sales is one of the reasons NTZ is a safer bet than most.