US economic data has generally been absolutely abysmal lately, fed fund futures are fully pricing in 50bps worth of rate cuts by December, and yet the greenback has still strengthened quite a bit versus most of the majors. Why? The Senate voted in favor of the Treasury's $300 billion bailout bill, but more importantly for the greenback, signs of recession are popping up all over the place. In the Euro-zone, UK, Japan, Australia, and New Zealand, economic indicators have been extremely disappointing, and with the US recession likely priced in already, there is room for currencies like the euro and British pound to fall lower.

Souce: Bloomberg