Overnight risk sentiment was stable with US stock futures trading broadly flat at the time of writing. This is mainly due to rising expectations of EU Finance Ministers agreeing on a temporary solution for Greece. However, it appears too early to expect a major agreement as soon as today.

It must be noted too that officials including German Finance Minister Schaeuble already indicated that no deal is imminent.

Accordingly Greece-related uncertainty is likely to remain intact.

Even in the case of a more positive development we expect EUR rallies to remain a sell as strongly capped ECB monetary policy expectations should ultimately prove the single currency’s more sustainable driver.

Hence we remain short EUR/USD.

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