The modern shapes of this weekday name are still used in the scandinavian languages, and Icelandic, Finnish and Estonian.
The “laug” portion comes from Old High German “louga”, from PIE root leue- "to wash."
The “dagr” portion comes from the PIE root agh- "a day" with an initial “d” added as part of Old High German. OHG is the ancestor of Old Norse.
This is from Etymonline - a great resource for language information https://www.etymonline.com/search?q=laug
But it should give the broad strokes, just like talking about PIE is certainly a broad stroke.
The modern shapes of this weekday name are still used in the scandinavian languages, and Icelandic, Finnish and Estonian.