The price action in EUR/USD overnight was a painful reminder to the ECB that it may have to try harder if it wants to compete in the global currency wars, says Citibank. "One could argue that market dollar longs and thin market liquidity overnight exacerbated the selloff. Then again, there is no denying that the dollar is, once again, a 'victim' of the 'trigger-happy' proactive Fed and the euro is supported by ECB' image of being the most conservative major central bank (CB) while," Citi adds. The question is then whether the difference between the two CBs could support the currency pair over longer period of time. ... (full story)