A rout in the euro turned into a rally in an impressive reversal Monday. Global stocks were beaten up as the yen led the way and loonie lagged. Japanese housing and wage inflation data is due later but the focus will remain on Chinese stocks. Despite the initial plunge in the euro, the currency closed Monday about 40 pips above Friday's close. 4 of the Premium trades are in progress, including EURCAD. EURJPY was stopped out, before returning to the initial entry level.
The euro reaction to bad news on Greece over the past month has been tough to reconcile. We highlighted skews in bunds and carry trades that made it a tricky trade. The price action on Monday confirmed it.