EURUSD Weekly Outlook: Key Correlation Fails, Breakout or Range Trading Ahead?

Update - just saw on FF Reuters report that ECB already trying to jawbone the EUR lower

Why are USD rates dropping if ECB expected to ease and Fed expected to tighten?

Draghi told he wants EUR down, and Ukraine started military action in eastern part of country, and 40.000 Russian wait just across border. If these 2 info don't bring EUR down, nothing will.

Also one of few the few that not only lay out the fundy and tech drivers in greater detail than most, but also attempts to make conclusions about the net effects of all these drivers rather than just leave us to do that hard work.

They have been doing that for months

only when EUR hitting medium term highs

USD rates are still up overall since February, they’ve only started falling in past 3 weeks due to a few factors:
•They got close to longer term resistance (2.8% on the 10 year note)
•Weaker US data undermined hopes for faster tightening
•FOMC member comments, Yellin comments, and FOMC minutes confirmed Fed retains strong dovish bias
So drop in US rates a short term thing from the past 3 weeks. As we note in our post on Lessons for the Coming Week, there are no huge fundamental or technical trend drivers, so we expect most global asset markets, including credit markets (and thus comparative EUR and USD rates) to remain range bound in the near term. That suggests that US rates are more likely to inch up than down.
Longer term expectations remain that USD is due to get an eventual rate advantage over the EUR. However changes in relative benchmark interest rates are unlikely in the coming weeks.

This Jawboning has been carrying on pretty much nearly every 2nd day for the last few weeks at least, it's been Easing Mania, Taper style. I have no idea how you missed it.