EUR still looking soft as stand-off in EZ continues

Still no agreement between Greece and its creditors and any uncertainty will continue to weigh on the EUR in the short term. The Greek finance minister seemed willing to accept one type of proposal but any extension of the current bailout package seems unacceptable to the new Syriza negotiating team.

Some of the EUR crosses like EUR/JPY and EUR/AUD still look to have significant downside potential and that might be a good way of playing the bearish EUR card, in the shortish term at least.

The longer term term for the EUR is less clear. Whilst any shock of a Greek EZ exit would be immediately EUR bearish, the longer term implications would be quite bullish. That is presuming that there is no contagion into Spain, Italy etc. Any sign of that and the EUR will be totally friendless.