The market was pricing in Fed funds rate at 4.25 percent by the year end at one point, now it has been pushed back to 3.75 percent. The dollar will struggle in this environment.

The Fed can't stop increasing rates in this environment. As long as the economy keeps surprising and the data is still strong, support for the dollar will be there.

A strong non-farm payroll report today would give the dollar a significant boost.

ZEW was a disappointment and it shows there's still problems in Europe, ... The market got ahead of itself in terms of how healthy Europe is, and we're now seeing the euro drop.

People are unwinding growth expectations and interest rate expectations,

We're very mechanical, and we're not putting any emotion into it.

Given the extremely weak data this morning, sterling has fallen quite sharply.