The euro sinks toward 1.0800 after failing to crack 1.0870

The euro is floundering near the lowest since July 8 as the US dollar broadly strengthens.

It’s tough to say what’s driving the moves at the moment but Thursday’s stronger US GDP numbers and Friday’s hotter PCE inflation are tailwinds for the dollar. That said, Fed pricing hasn’t moved much and Treasury yields are lower today (though off the lows).

It’s month-end so that’s certainly a consideration and the Nasdaq has found a nice bid today in a tumultuous market.

The ECB highlighted data dependence and that will leave it vulnerable to data this week.

Technically, there will be bids at 1.0800 but the bulls might flee if that cracks, particularly given the broadening USD strength today. Datawise, the only notable release today is the Dallas Fed and that’s rarely a market mover. I will note that McDonald’s today warned about a broadening consumer weakness that they expect to last for a few quarters.

This article was written by Adam Button at www.forexlive.com.