What I find hard to understand is the value of the Euro vs. the Dollar. Now I am no genius, but why do people place value on the Euro when the economies of the main countries backing it are so bad?
easy: TWO SETS OF BOOKS.
Seriously, the Eurostat which is responsible for EUecconomy statistics has been caught up in two major book fixing scandals.
The euro is being inflated by the USA intentially in order to impose a "poor mans" tarriff on EU governments subsidizing their goods and services. WTO does not allow a tarriff, but it does allow for a good old fashioned currency manipulation.
The Euro at it's inception was set to be worth more than the dollar (my thing is bigger than your thing syndrome), and it has appreciated about 10% since its introduction.
The US is running a large trade deficit which is one reason and the other is for diversification (don't put all your eggs (money) in one basket (dollars))
That is why it will be very profitable to 'short' the Euro.