The euro extended the rally initiated by yesterday’s ECB inflation projection upgrades, while the Aussie dollar was an underperformer following a much worse than expected Australian trade deficit number. The euro surged concomitantly with a new spike in Bund yields, with the 10-year cash yield reaching 0.984% before settling. EUR-USD logged a 17-day peak at 1.1379, while EUR-JPY forayed further into five-month high territory and EUR-CHF reached 10-week highs.