The U.S. Dollar seems to have hit a all time high against the yen and the Euro. The expectations seems to be down as far as interest rate is concerned. The Fed’s seems to be undecided as far as the rate’s are concerned. The Fed. is not in a hurry to reduce the interest rates. This is because they are vary of the inflation rate. As far as the Japanese market is concerned, they seems to be buying more and more dollars and the future of which depeneds on a large extent to the economic data/Fed’s decision on the rate.
China and U.S have direct exchange of view on the currency issue. U.S feels that Yuan needs to appreciate before it can increase its trading, because now the yuan would gather an unfair advantage. This might have huge impact on China investments in U.S.
As far as the Euro is concerned, looks like the market might turn bullish as the Euro zone is in quite a comfortable position right now.