This last week has been another rough one for the US dollar. We saw it sink to an all-time low against the Euro, hitting 1.4318 briefly before settling to just under 1.43 for the weekend. The news was pretty bleak all week for the dollar with pretty poor economic releases and some discouraging words from Fed Chairman Ben Bernanke. And what about oil? Oil has been skyrocketing lately, hitting the $90 a barrel earlier and settling to around $88 today.

So, can the dollar recover?  And if so, when?

Well, it doesn’t look like much of a rebound is in the works this year. Most economists feel the housing slowdown will last most of next year, if not longer. This has largely not leaked into the rest of the economy, but we’re starting to see signs of a slowdown. Employment figures have been mixed and deficit numbers are up.

Although a week or so ago there was about a 50-50 chance we’d see another interest rate cut, that number seems to be about 90% now. If we do see a cut in October, it’s probably likely another one is on the way before the end of the year.

I wouldn’t be surprised to see the Euro shooting up to 1.45 within the next couple of weeks…and from there….who knows?