Frankly such excessive movement, downward by the USD and upward by the Euros aren’t advantages to both of them.   But forming the European Community, EU basically give up the rights to monetary control of their currency, so it is difficult for EU to manipulate its interest rates to adjust its currency.   But the high Euro discourages exports and makes it expensive for European goods in the USA market.   On the other hand, it is good for USA exporters but not good for those buying European goods in USD.

For currencies, the most important is stability, such movements undermine the basic trade structure of the countries involved and is not good for trade.   The USA Fed may still drop interest rate at its next meeting in 29/30 Apr 08, this will add pressure for the Euro to go upwards which isn’t what the Central Bank of Europe wants at this moment.   Problem is they have limited resources to control such a situation.