First it was former ECB executive board member Lorenzo Bini-Smaghi saying that "policy makers led by President Mario Draghi will act to weaken the euro" which led to the first shock in the European currency this morning, and now it is Bundesbank head Weidmann, reminding the world that in a monetarist currency war world, he who crushes their currency last, loses. As a result moments ago he said that the ECB may cut rates if new info warrants, something that was actually quite obvious two weeks ago and some 300 pips lower, yet the relentless purchases of Italian bonds by Japanese financials drove the EUR ever higher to its highest level since February yesterday. Net result: time to reacquaint the EUR with gravity.
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