The Euro is ridiculously over-valued right now.
Spot on. Reports I've read show the Euro is 25% overvalued and the Yen was 20% undervalued. The euro and yen have gone up since then so probably 30% and 15% respectively at this point.
http://www.oanda.com/products/bigmac/bigmac.shtml
big mac index is usually good predictor. now to find a fund that is both long on yen and short on euro and make some $$$