"Put that Chinese product back, Mr. Euro, as of 20 minutes ago, it costs too much!"
Back when it was the surging dollar, along with pegged yuan, Europe complained that it was being abused.
Now, thanks to the PIIGS weakness, the euro's decline means a lot of previously signed deals between Europe and China are being cancelled because the margin has evaporated.
Upshot? A China now made more nervous about its ability to export is less likely to go through with its promised revaluation of the yuan, hurting our exports in turn.
This 3-way ain't going away any time soon; it's like watching an old Three Stooges routine. Eventually, the interlocking dynamic works it way around the horn, and then it's your turn to get poked in the eye.
Nyuk nyuk nyuk!