After months of decline the US dollar finally took a very sharp turn this month and gained a lot of ground on the euro. In less than a month the USD appreciated from $1.59 per euro to $1.47 per euro. Not only the dollar took a 180-degree but prices of oil, gold and other commodities have dropped sharply. Not so long ago oil flirted with a price of $150 per barrel but now it has dropped almost as low as $110 and even an important geopolitical event like the war between Georgia and Russia couldn’t turn the tide.

Here’s a look at the USD/EUR exchange rate since 2000:

I hope the dollar will continue the rise, hopefully to $1.30 per euro by the end of the year. Many analysts believe the euro is still way overvalued if you look at the purchasing power parity. The Economist’s Big Mac Index for instance shows the euro is still 38 percent overvalued if you compare the price of a Big Mac menu in the US and the EU