What goes down, must come up--and so should the U.S. economy and currency.

Year end markets often see a bout of profit taking following a one way market and this year should see the same. However, the uncertainty in the UAE could see the Yen strengthen one more time before following the European currencies...

With the one way downward trend in the Dollar over the majority of the year the risk is for the market to cash in on its profits.

The market has only had eyes for the federal deficit and may have ignored the continued flat to weak data coming from Europe and this risks a rebound in the dollar - but cause the Yen to strengthen against the European currencies.

The fiscal half year end promptly stopped yen strength in its tracks.

But dollar strength should return from October...

...but for how long will this last before things revert back to the way they were?

...but is everything as it seems in the forex markets?

But will consumers have the confidence to sustain this?

A return into recent trading ranges could well subdue enthusiasm