(from today's Financial Times)
The reality is that you buy on the rumour and you sell on the fact. The euro was oversold and so it snaps back. Frankly all things considered it does remain undervalued versus my instinct of a fair value against the US dollar (of 1.15) even adjusting for different positions in the monetary policy cycle and related.
Today's decisions indicate on the big asset classes that bond investors should be concerned. Why? Well we know that European bond yields are far too low...
...and exhibiting bad relative value:
Therefore you end up with this (below) today given inflation generation hopes to much nearer the 2% target level are fully reiterated today: