[Moonman62]

The recent rally has taken the euro from $1.20 about two months ago, driven primarily by concerns over the U.S. trade and budget deficits.

That's funny. We ran trade deficits all the through the late 1990's and the dollar kept getting stronger.

[Alberta's Child]

It's not the trade deficit that's the problem -- it's the "current account deficit," which is basically the combination of the trade and budget deficits.

[Coryoth]

I suggest you read this for a good explanation of why that occurred then, and an understanding of why the current account deficit is a potential problem now.