"Contraction in the US economy is slowing..."

This seems to be the theme du jour. So, will the markets go up and crush the Dollar? What exactly does a flattening economy mean to currency traders right now?...Here are some notes and charts I have compiled:

• If stocks go down this week...will it be because of bad economic numbers (such as a terrible ISM Non-Manufacturing report on Tuesday...which would be Dollar bullish) OR will it be because stocks are just way overbought?
  


• The ECB will have a rate decision on Thursday. The Dollar and stocks usually go in opposite directions to each other so, if Euro traders don't like what Trichet says in a couple of days, that could be Dollar bullish too. Remember, he instituted a gag order to all ECB officials.
  


• Thursday is also the day for the "stress test" results on the banks. Whether these tests really mean anything or not, you can still consider it an event risk.


• This chart of the Euro/Yen. I shorted 4 lots of this because of the 4 hour chart below, and because of the tight stop loss I could place if I was wrong. The USD/JPY, EUR/JPY and other yen crosses are highly correlated with the stock markets. When they go up, market probably is...and when down, market probably isn't. (Clicking on the chart gives you a clearer view):
  
  

  

There are are a few more notes...so stay tuned.