Are FX markets being completely central bank driven?

Are FX markets being completely central bank driven? After German bund yields rallied to their highest levels in eight months, the euro has surged against the dollar with its biggest two-day gains in more than six years as the Bund-Treasury spread narrowed. Bonds were given support yesterday when Mario Draghi played down the effects of recent market conditions. But just how much of the recent upside in the Eurozone has been driven by improving fundamentals and how much has been driven by central bank action in the bond markets? We talk to Jeremy Stretch, head of G10 currency strategy for CIBC for his views.`