To find out all you need to know about the impact of the European debt crisis, just look at the performance of the U.S. dollar in the last three months:

You just can’t argue with the trend seen in the dollar’s performance. There’s a clear argument to make for its longevity, too: While government leaders are getting close to a rescue deal with Greece, even if one does happen, who’s going to make Greece accountable?

Furthermore, why try to predict any outcome? Just look at the dollar, which is solidly above its 200-day moving average. You’ve got to balance the fundamentals with the technicals, and right now, the ingredients are all there.

But the dollar isn’t your only option in these trying times for the euro. The CurrencyShares Euro Trust (NYSEArca: FXE) is down 5% for the year. [ETFs to Ride the Euro's Changing Fortunes.]

Are you bullish or bearish on the euro’s prospects? One way to play your euro sentiment is by using leveraged and inverse ETFs. Speculation in currency trading is highly risky, especially when leverage is added into the mix. Before you jump in, be sure you know what you’re jumping into. Market Vectors Double Long Euro ETN (NYSEArca: URR) and Ultra Euro ProShares (NYSEArca: ULE).

Other currency opportunities can be found in areas well outside Europe. The Canadian dollar, Australian dollar, Mexican peso, Brazilian real and an ETF that holds a basket of currencies have been faring well in the last month:

• CurrencyShares Canadian Dollar Trust (NYSEArca: FXC), up 2.1% in the last month
• CurrencyShares Mexican Peso Trust (NYSEArca: FXM), up 0.7%
• WisdomTree Brazilian Real (NYSEArca: BZF), up 1.7%
• CurrencyShares Australian Dollar Trust (NYSEArca: FXA), up 1.2%
• PowerShares DB G10 Currency Harvest (NYSEArca: DBV), up 1.2%

For more information on world currencies, visit our currency category.

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

Max Chen contributed to this article.

President Barack Obama placed the blame for out-of-control health care costs squarely on the feet of insurers, accusing them of putting profits before people. He also called out Republicans for ignoring the problems. Today’s speech in Pennsylvania is the first of many to take place as he takes his call for health care reform across the country. Vanguard Health Care (NYSEArca: VHT) is down slightly by 0.3%. [Where You Can Find Value in ETFs.]

AIG (NYSE: AIG) is continuing to unload various units, this time selling another overseas life and health insurance business to MetLife Inc. (NYSE: MET) for $15.5 billion. Earlier this month, AIG sold its Asia-based life insurer to Britain’s Prudential for $35.5 billion. The deals are all in the name of repaying debt that the government loaned the insurer so it wouldn’t collapse and take the American economy down with it. iShares Dow Jones U.S. Broker-Dealers (NYSEArca: IAI) is up slightly by 0.3% so far today. [6 ETFs for a Financial Recovery.]

McDonald’s (NYSE: MCD) is still a powerhouse overseas, seeing its same-store sales drop 4.8% last month. Leading the charge in overseas strength were China, Japan and Australia. In the United States, it’s a different story: same-store sales sank 0.7%. PowerShares Dynamic Food & Beverage (NYSEArca: PBJ) is down slightly so far today; McDonald’s is 4.8%.

While a firm bailout deal for Greece is still up in the air, even the faintest whiff of one has sent the euro higher. France’s President Nicholas Sarkozy stepped forward to say that major eurozone members will do whatever it takes to ensure Greece isn’t isolated. European leaders also bandied about the idea of creating the European equivalent of the International Monetary Fund (IMF) going forward. WisdomTree Dreyfus Euro (NYSEArca: EU) is up slightly this morning. [Eastern Europe ETFs May Outstrip Rest of EU.]

While the unemployment rate held steady at 9.7% and 36,000 jobs were lost in February, the number of jobs the economy shed was far less than what economists had been expecting. The impact of the snowstorms on the East Coast may have had a small impact on the final figures, but the Labor Department wouldn’t say how much.

The jobs report quickly had an impact on other areas of the market, primarily easing investors’ fears and encouraging them to take on more risk. That, combined with reassurance from China’s premier that the country would stick to a looser monetary stance, helped boost copper prices by more than 3%. Concerns about China’s demand for metals has weighed on investors, but those fears may be unfounded, as China still intends to be a major consumer of metals. iPath DJ-UBS Copper TR Sub-Index ETN (NYSEArca: JJC) is up nearly 2% this morning. [Your Guide to Investing in Metals ETFs.]

High-yielding currencies are also leading the charge in the markets this morning, with the dollar gaining ground on the yen and dipping against the euro and other higher-yielding currencies, such as the Australian Dollar. Greece woes are keeping the euro’s gains tempered, though. CurrencyShares Australian Dollar Trust (FXA) is up about 0.6% this morning; the WisdomTree Dreyfus Euro (NYSEArca: EU) is flat. [Read Our Currency ETF Special Report.]

Read the disclaimer, as Tom Lydon is a board member of Rydex|SGI.

Greece may try to float a small bond offering, which comes on the heels of some kind of “good news” in  regards to taxation and spending, remarks Jon Weisenthal for Business Insider. Weisenthal expects that speculators will be caught by surprise, the announcement will be timed to coincide with other “support” from the rest of the European Union, which could cause the euro to appreciate, and Greece would then dish out its debt offering.

For now, though, the euro is declining. While experienced currency traders might gravitate toward using a forex account to short the currency directly, the average currency trader may find it easier to use short euro ETFs, comments Ron for Benzinga. [ETFs Lag on Eurozone Debt.]

One such option is the UltraShort Euro ProShares (NYSEArca: EUO). EUO tries to provide twice the daily inverse performance of the euro against the U.S. dollar. The reasoning goes that the euro is falling as a result of Greece and other E.U. countries are failing to service large public debts and may have to default.

If Greece were to be bailed out, the euro may gain some strength, but other members in the eurozone have an equally poor fiscal outlook. Countries like Portugal, Ireland and Spain may pose problems for the euro.

But wait a minute. Before you dive in and buy a short ETF, understand how they work, what the risks are  and decide whether they’re actually right for you. [Leveraged and Inverse ETFs: What You Should Know.]

For more information on the euro, visit our euro category. Or, take a look at our ETF Trends’ Guide to Currency ETFs. Other euro currency ETFs and ETNs include long, double long and double short options.

• Market Vectors Double Long Euro ETN (NYSEArca: URR)

• Market Vectors Double Short Euro ETN (NYSEArca: DRR)

• Ultra Euro ProShares (NYSEArca: ULE)

• CurrencyShares Euro Trust (NYSEArca: FXE)

• WisdomTree Dreyfus Euro (NYSEArca: EU)

Read the disclaimer, as Tom Lydon is a board member of Rydex|SGI.

Max Chen contributed to this article.

Today’s fourth-quarter GDP numbers indicating 5.9% growth in the economy are a slight improvement over the previous 5.7% reported. But don’t get too comfortable with that. Economists expect that the numbers for this quarter will ultimately be much slower, judging by other numbers that have emerged in recent days.

January sales of previously occupied homes declined 7.2%, surprising economists, who expected a slight increase. These numbers are hot on the heels of Tuesday’s report on new home sales, which plummeted a whopping 11% in January. The numbers are being taken as a signal that tax credits may ultimately not be enough. iShares Dow Jones U.S. Home Construction (NYSEArca: ITB) is flat this mornig; in addition to owning homebuilders, the fund also holds retail stores that benefit when Americans purchase or upgrade homes. [Real Estate ETFs: On the Mend, or Trouble Ahead?]

Americans are becoming increasingly frustrated at the lack of growth in the job market, so it’s no surprise that consumer sentiment dove this month. At least outright panic over layoffs has abated, but lasting confidence may not come until a jobs stimulus package comes down and growth returns. [5 ETFs to Play the New Retail Climate.]

Business activity is picking up the pace, rising more than expected this month to the fastest pace in nearly five years. The barometer is perched at 62.6; any reading above 50 signals expansion.

Things seem to be improving at AIG (NYSE: AIG): the nation’s largest insurer reported an $8.9 billion loss. It sounds bad, until you recall that it’s an improvement over last year’s $62 billion quarterly loss a year earlier. PowerShares Dynamic Insurance (NYSEArca: PIC) is flat this morning. [Why Banks May Be the Next Big Movers.]

European Union officials, the International Monetary Fund (IMF) and the European Central Bank have all been in Greece this week to examine the country’s efforts at slashing its deficit. The goal? Slash the massive budget deficit by 4% this year. If Greece doesn’t come up with a plan, the euro could continue to suffer and financial uncertainty and fear about the region could have a worldwide contagion effect. CurrencyShares Euro Trust (NYSEArca: FXE) is up nearly 1% this morning.

Read the disclaimer, as Tom Lydon is a board member of Rydex|SGI.

After the brouhaha with Greece’s rather large deficit problem, people have taken a higher interest in other European countries and noticed that the currency swaps Greece used to enter into the common currency was disconcertingly similar to Italy’s situation, comments Don Dion for TheStreet.

Furthermore, Italy’s municipal governments also utilized derivatives. All together, 519 municipalities used derivatives contracts that resulted in almost a billion euros, or $1.35 billion, in losses. However, it wasn’t the fact that they lost that much money, but more about the fact that they used the negatively perceived derivatives.

This week, Columbia economics Professor Robert Mundell, credited for laying the intellectual groundwork for the creation of a common currency, stated that Italy is the greatest threat to the euro since Italy makes up 25% of the eurozone debt. Many haven’t scrutinized Italy since its budget deficit isn’t far out of bounds of the Masstricht Treaty, which limits annual deficits to 3%, and no one is considering a sovereign default or banking crisis. [ETFs Hit By a Weakening Euro.]

Nevertheless, investors have been selling Italy’s ETF iShares MSCI Italy Index (NYSEAca: EWI), and over the past three months, EWI has become the second-worst performing Europe ETF. The fate of the ETF is greatly tied to the outcome of Greece’s problems and the weakening euro only exacerbates the situation, says Dion. [Italy ETF: Forecast for Growth, But Danger Lurks.]

For more information on Italy, visit our Italy category.

• iShares MSCI Italy Index (NYSEAca: EWI)

• CurrencyShares Euro Trust (NYSEAca: FXE)

Read the disclaimer, as Tom Lydon is a board member of Rydex|SGI.

Max Chen contributed to this article.

Every investor is thinking about interest rates these days. They’ve been at record lows for so long that they’re bound to come back again soon, right? Bernanke told Congress this morning that it isn’t the case: interest rates will remain low for an “extended period,” in fact. He’s said it before, though: on Jan. 27 and on Feb. 10. Will investors finally buy it? The SPDRs (NYSEArca: SPY) are up nearly 1% this morning.

Dramatic testimony on Toyota (NYSE: TM) continues today. Akio Toyoda, the company’s elusive leader, is finally going to appear before the House Committee on Oversight and Government Reform to read a prepared statement. In the statement, he plans to accept full responsibility and assure lawmakers that the automaker is working to fix the problems that have been a public relations nightmare for the company.

New home sales took an unexpected 11% spill last month, dropping to the lowest level on record. It’s being taken as a signal that government tax credits may not be enough to revive the ailing sector. Homebuilders are in a tough environment these days: not only are home sales tanking, but they’re competing with foreclosure properties. iShares Dow Jones U.S. Home Construction (NYSEArca: ITB) is down nearly 1% this morning. [Real Estate ETFs: On the Mend?]

Greece received a warning today that Standard & Poor’s may downgrade the already-struggling nation by a notch or two in the coming weeks. Such a downgrade would put the country’s debt near junk territory. If Greece continues to struggle, it could further sink the euro, which has already suffered amid the crisis. CurrencyShares Euro Trust (NYSEArca: FXE) is up slightly this morning. [Spain, Greece, Portugal: Hope in Sight?]

Read the disclaimer, as Tom Lydon is a board member of Rydex|SGI.

Obama unveiled a $1 trillion, 10-year compromise on the health care plan that would enable the government to block or scale back premium increases, reports the Associated Press. He then demanded a “yes or no” vote on this plan, or something resembling it. The plan is very similar to one already passed by the Senate. Health care ETFs seem little moved by the new plan; Health Care Select Sector SPDR (NYSEArca: XLV) is down about 0.25% this morning.

Lingering concerns about Greece’s sovereign debt are pulling down the euro in early trading. A German finance ministry spokesperson said no decision about Greece’s debt has been made, and that Greece’s government will meet with a group that includes the International Monetary Fund (IMF), European Central Bank and the European Commission, reports Fabio Alves for The Wall Street Journal. Currency Shares Euro Trust (NYSEArca: FXE) is flat this morning.

Crude oil prices are retreating from six-week highs as watchers eye a refinery workers’ strike in France. Workers are striking at Total’s refineries on plans to cut back on processing capacities. The strike has many concerned that gas supplies could be restricted, raising prices, reports Claire Rangel for The Wall Street Journal. PowerShares DB Oil (NYSEArca: DBO) is flat so far today.

Read the disclaimer, as Tom Lydon is a board member of Rydex|SGI.

Italy’s economy has been forecast to grow 1% this year on the back of stronger exports, Lorenzo Totaro and Flavia Krause-Jackson for Bloomberg report. That beats the previous forecast of 0.6% growth. Consumer spending is also forecast to increase 0.8% this year and 1.1% in 2011; exports may grow 3.8% this year and 3.9% next year.

Christopher Amsden for The Wall Street Journal explains that derivative contracts taken out by Italian municipalities could harm local public finances for decades, as debts and imbalances may magnify over time.

Italy used a currency swap to help its application to join Europe’s monetary union at its birth more than a decade ago, and this is the same situation that Greece is going through.

Originally the derivatives were used to hedge balance sheet risks, but many small Italian municipalities lacked proper judgment in how to use them, and may have mistakenly used them to garner up-front cash. Italian cities are facing large amounts of debt as time has gone on. [Italy: A Slow and Steady Outlook.]

Meanwhile, the European Union may need to limit any more appreciation of the euro. A decline in the euro to $1.25 or $1.30 would be “better for Europe,” one analyst says. Sara Eisen and Allison Bennett for BusinessWeek also say that the EU has paid for an overly strong euro for some time now and simply can’t afford. [The Impact of a Weakening Euro.]

For more stories about Italy, visit our Italy category.

• iShares MSCI Italy Index (NYSEAca: EWI)

• CurrencyShares Euro Trust (NYSEAca: FXE)

Read the disclaimer, as Tom Lydon is a board member of Rydex|SGI.