The effect of Fannie and Freddie intervention on the dollar is here - dollar crosses 1.60 for the first time. But it is not that Euro should be strong against dollar - Eurozone is also struggling now. There is going to be competitive devaluation between dollar and Euro starting later this year.
If there is a way to get a fixed deposit in Chinese Yuan, that is probably the best investment right now. Even better would be middle eastern currencies that are pegged to USD. In an year where there are historic macroeconomic events occuring, the pegs could also be broken.
The debate right now isn't between a bull and a bear - it is between a bear and an ultra-bear.