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

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 is everything as it seems in the forex markets?

But will consumers have the confidence to sustain this?

Moribund conditions persist