Euro exchange rate advances as forex traders buy euros again.
the euro rate benefited from china buy euros and selling us dollars as they diversify out of the greenback.
Russia has also been in the markets selling US dollar assets as sanctions from the Ukraine conflict esculates and the possibility of sanctions from the west.
this is going to create longer term problems for the ECB as the euro outlook is now for 1.4200 in coming weeks.
super Mario Draghi has a impossible task – does he let the currency strength and risk deflationary pressures and weaken terms of trade?
but if weakens the euro exchange rates he risks highlighting the euro zones economic woes and further attacks from fickle forex tradees.