If you're wondering why the euro is rallying recently, here's your answer: short covering
http://uk.reuters.com/article/2012/0...8D849820120208
People who were expecting to ride down the EU had to cover due to the recent glimmers of hope regarding a short-term resolution
Quote:
"There has been a propensity by the market in general to
look at the Greek scenario with a glass-half-full approach,
irrespective of the deadlines Greece has missed," said Jane
Foley, senior currency analyst at Rabobank.
"I think positioning has a significant part to play.
Although shorts are off their record levels, they are still
really extreme and people do not want to get caught in a rally."
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