Euro extends decline to 1.1130 as the dollar stays hot

<p>The US dollar is strong across the board today and that's weighing on the euro, which ended an 8-day rally this week. Yesterday, I talked about <a href="https://www.forexlive.com/news/video-heres-your-chance-to-sell-the-euro-and-other-musings-20230719/" target="_blank" rel="follow">the opportunity to sell the euro</a> in a video but didn't mention targets.</p><p>An initial one is 1.1095, which was the old series of highs in April.</p><p>That would make for a decent short term trade but I'm bearish in eurozone economic prospects and increasingly worried that the Federal Reserve <a href="https://www.forexlive.com/centralbank/here-is-the-path-to-a-6-fed-funds-rate-and-beyond-20230720/" target="_blank" rel="follow">will need to hike to 6%</a> or hold rates high throughout 2024. The market is pricing some of that in today with US yields up 9-12 bps across the curve following strong initial jobless claims numbers.</p><p>That may set up a return towards the parity zone and I'd hate to waste a good entry.</p>

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