(Action Economics) - 07:15 EST FX Update: The euro rose on a strong German Ifo business sentiment reading only to be knocked lower by ECB Draghi's hammer, which took the form of a warning that a worsening inflation outlook would be a trigger for QE. EUR-USD dropped back to near net unchanged levels around 1.3820 after peaking at 1.3343 in the immediate wake of the Ifo release. Elsewhere, USD-JPY continued to oscillate around 102.50, and sterling failed to react to a stronger than expected CBI sales survey. The NZD and AUD were choppy. NZD-USD rallied to a nine-day peak of 0.8636 during the Wellington session only turn sharply lower and extend to a 0.8665 low during the London AM. A 25 bp rate hike by the RBNZ to 3.0% had elicited kiwi buying, but the tightening had been widely expected and profit taking set in ahead of the ANZAC Day public holiday tomorrow, which will see both Australian and New Zealand markets closed. AUD-USD followed suit, dipping to a near three-week low toward 0.9260. There seemed to be some rotation into CAD, as USD-CAD dipped at the same time the AUD and NZD tumbled.