Broad US dollar strength weighing on the euro

Here's what's behind the trade:

  1. Bond spreads. 10-year T-note up 6 bps, German 10s up 2 bps
  2. France was downgraded late Friday
  3. Better risk sentiment has some dipping back into euro-funded carry trades
  4. Talk of more ECB QE on slower global growth
  5. EUR/CHF selling
  6. Goldman Sachs talking about EUR/USD falling 6-10 cents
  7. Hawkish comments from the Fed's Bullard
  8. The Fed's Williams saying a rate hike last week was 'a close call'

Bids at 1.1185 are being tested at the moment.