Or is the rest of the world just getting worse?
The US Dollar has been on a recovery track for the month of November, despite the fact that the fed has committed itself to printing as many dollars as required to keep things afloat.
Regardless of that, the dollar was due for a correction. Currencies that are extremely extended in one direction rarely stay that way without taking a breath between dives.
The dollar is approaching it's previously broken support area, which is now resistance.
There is talk in the forex community that this is the dollar recovery dance, but I don't buy it. There are too many things fundamentally wrong with the dollar for it to recover at this point. Some would say that everything that is bad is priced in already, but I would disagree strongly with that statement.
The truth being that the US has been in denial about how bad the financial crisis actually was, and it's going to take an insane amount of dollars to cover up all of the damage done by banks, consumers, and the entire real estate industry.
So far, nothing has really been cleaned up. The banks are holding on to real estate that they can't prove they have the right to foreclose on, and even if they did, as soon as they do, they have to write it down, which is not in their best interest anyway, the government and the fed, continue to just solve everything by throwing more paper money at it, without solving the fundamental problems, and, no one in real estate wants to admit we are in deflation and allow prices to fall as they should.
The fundamental problems are not being solved, and in my opinion that is bad for the dollar. There might be some short term uptrends, but I think that until the truth is admitted and faced by the US, the future of the dollar is bleak.
That's my take, what's yours?