EUR/USD hit a fresh intraday low of 1.3555 after a hedge fund sold aggressively in the wake of a half hearted move above 1.36 on the better than expected Greece T-bill auction result. The pair has since bounced back into the 1.3570s but it is slow going and the marketappears to be caught a little long at the moment. If one was looking for a good result from the auction than today’s result was probably as good as it gets – the 6-month yielded 4.55% whilst the 1-yr yielded 4.85%. If the auction had taken place last week we would have talking yields in the 6-7% range. That said the price tells the story and Euro skeptics are out in force again today. I still prefer to be long around here but my confidence is a little dented at the moment.