FX – the big story in FX remains the euro, which jumped ~2% on the week

FX – the big story in FX remains the euro, which jumped ~2% on the week (the largest weekly gain in more than 1 year). The euro jumped for a lot of the same reasons European stocks acted well (see above) – the negative sentiment towards Europe has abated meaningfully over the last 1.5 wks. A massive short covering burst helped the euro (data out Fri revealed that euro net short positions plunged 44% in the week ended June 15 per DJ), which some are taking to be a neg. as this buying demand won’t repeat going forward. The other big story in FX land was the Swiss Franc, which surged to fresh highs this week after the SNB signaled that it would no longer intervene in the market.