BOTTOM LINE: HAS DOLLAR BOTTOMED?

The US dollar got slammed in the first half of 2007, especially in July when the euro and pound sterling reached multi-year highs against the dollar. One sign of a change in the dollar's current downtrend is that the psychological support of 80.00 in the US Dollar Index is holding. The US dollar generally does well against other currencies (except for the Japanese yen) in times of widespread marker turmoil, is a safe haven destination of last resort. Gross domestic product also will be important to watch while the dollar attempts to recover in August and September. European economies are showing signs that growth cannot continue it its current rate, which is above trend. The euro set its all-time high against the dollar this summer and some analysts say it has peaked. The euro has hit the apex of euro euphoria and there will be a downtrend in euro sentiment overall and an improvement in US dollar sentiment.