Moody's Investor Credit Rating Service is warning of a possible downgrade in the credit rating of the US Government. This announcement is due to the harsh fighting going on in Congress over raising the US Debt Ceiling.
One of the things that interest me so much about this is why is the fighting happening last minute? The debt ceiling issue has been on the table for at least a year and the debates should have been constant up to this point.
In any case, while the bickering over invent money or don't invent money continues, the dollar is tanking as the rest of the world really isn't sure whether the boat is about to flip or not. Add to that, the Fed Chair is all but promising QE3 which would tank the dollar badly.
I suppose no matter how you look at it, both issues signify that interest rates are not going to be raised any time soon. In fact, I'd say that it will be years before anyone sees any change in rates. Congress can't even stop spending and just focus on paying off the debt they already have, so making that existing debt more expensive seems like an impossible idea.
Either way, all of this spells out sell dollars. In the case of EUR/USD, you'll just be playing Russian Roulette to see which currency crashes first.