Welcome to flights to quality...and deflation.
Euro's getting pasted because the crap they've been hiding in their banks is about to be exposed, as well as the distinct possibility of various EMU members (round up the usual suspects, Spain, Portugal, Greece, Ireland, Italy, and might as well throw in Latvia and Lithuania too) having to default on their sovereign debt.
If there was EVER a time to be short the EUR/USD pair (that's ''sell the Euro'', for those in Rio Linda), it is now.
Full disclosure: been short, one way or another, since 1 January. Looking to get shorter tomorrow in the US session.
Good trading to you, Southack, and FReegards!