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Hardy on the euro, the ECB and the 'shocking' Russian outflows

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The Euro is down and out, according to Saxo Bank's Head of FX Strategy, John Hardy. It follows the ECB President, Mario Draghi, last Thursday, saying the European Central Bank would be happy to start easing measures in June. The vehemence of the reaction was telling, according to John, and it's clear, he says, the markets don't want to take this euro higher.
John also points out that Draghi's mention of EUR 160 billion in capital flows from Russia is an important factor in recent euro strength. "It's a shocking number", he says, and the key question is whether these outflows will continue. He notes there's a slight sense of relief on the markets as President Putin appears to be softening his stance a little on Ukraine.
John considers whether now is the time we're going to see broader US dollar strength. There are few important data points out this week and the dollar has moved back against the Swiss franc and to some extent the British pound, but he notes that sterling is still quite strong.