The market will not be confident in attacking the dollar until there is a much greater degree of confidence in calling the peak on Fed funds.
The market is looking at U.S. data and thinking, 'Is this a slowdown or a pause?' It is very unclear.
The market is correcting Friday's move (after payrolls). People are looking toward Greenspan and waiting to see how the U.S. will react after Labor Day.
Sentiment is still dollar negative, and it will take some very decent equity news to turn this around. The market needs something to hang its hat on.
I think there's a whole wealth of information suggesting that things are on the mend... I don't think this is really going to disturb market consensus that the German economy will continue throughout the course of this year.