Euro shorts ease up; renminbi stays weak

There was a small rebound in the euro this past week as shorts eased their positions, most likely due to uncertainty over the policy response to the Greek election. The best trading scenario would be a mildly positive election result, leading to a euro rally and no central bank response. The bigger the euro spike in that scenario, the better the chance to fade the rally.

The renminbi remained weak and the PBOC again tried to take the market lower, leaving the market and the central bank at odds once again.

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