The euro is 200 pips from the 2016 low as the breakdown extends

The story of the day is the major breakdown in the euro.

Germany's economy minister outlined the problem for the bloc. He said they must be ready to sacrifice growth and high inflation to support Ukraine.

We're seeing that play out in the market where investing in the US -- which will growth faster -- is drawing funds from Europe.

The big question next is whether 1.0340 holds. That was the 2016 low and if it breaks, we're back to 2003 levels and the potential for parity.

I don't think we can get through that level until we hear from the Fed. If Powell hikes 50 and indicates that more 50 bps hikes are on the table, then there's not much to stand in the way of a breakdown.

I'll also be attuned to the ECB but from everything I've heard, there's little appetite to tackle the inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term problem.

I think it was telling this week when both GOOG and WHR reported and downgraded their outlook for European growth.