It's been a one-way euro trip lower. The common currency has fallen every day this week, and is now near the lowest levels in 12 years.
Now, currency traders are keenly watching American economic data, as better news about the economy could lead the euro drop to intensify.
It all comes down to expectations about the Federal Reserve's next move. Most market participants believe the Fed will raise short-term rate targets this year. That should help the U.S. dollar and hurt the euro, as it means that holding dollars will produce greater returns than holding euros, increasing demand for the greenback.
Expectations about a June Fed move have been tamped down due to a bevy of soft economic readings, most conspicuously the March jobs number. But this week, the Fed minutes and hawkish words from William Dudley have told investors that a June hike is still on the table, according to Boris Schlossberg of BK Asset Management.
Dudley, the generally dovish New York Fed president, told Reuters on Wednesday that depending on how the data develops, a June move could be "still in play."