Market players are notoriously knee-jerk in their thinking and the recent price action on the dollar (versus the euro), which, incidentally, has spilled over into the cocktail party circuit, is being ascribed to the renewed round of structural fumbling within the European Union, which was triggered by the French "non" to the European constitution back at the end of May.
This, together with fresh signs of weakness in some of the major European economies, will finally push the ECB--so the analysis goes--to cutting rates; with the Fed, at best on hold, at worst still tightening, this will continue to keep pressure on the euro.
[My belief, incidentally, is that the French "non" really signals a hiatus in the "inexorable logic of globalisation", but more on that another time.]
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