US weakness could be a sign of “decoupling” and might remain abnormally weak without significantly dragging down the rest of the world’s economy.
German strength should be seen as a one-off effect of moves in the currency market rather than a sign that the domestic economies of Europe are primed for a boom.
The yen rallying on a relative unattractiveness is a weak way to rally indeed and this trade may soon fade for the currency,
The full report is available for download at
http://www.tradingfloor.com/en/Blog/Documents/Saxo_FX_Monthly_2010_August.pdf