EUR/USD is having another topside spurt trading up to 1.3338 as further short covering kicks in. Conciliatory comments from Trichet earlier this morning (opposed to his very, very bad remark overnight in terms of the IMF assisting Greece) kicked off the buying and it may not be over. The market of course remains extremely short Euro and the failure to hold levels below 1.33 might entice more short covering once European markets open. Obviously the Greece story has been all encompassing this year but it may be time to take it off the front page. The US/China ‘war of words’ and/or the jump in US Treasury yields may be the next big thing for the ‘worry warts’ to focus on. Elsewhere AUD/USD is ticking back towards 91 cents whilst GBP/USD looks set to recapture 1.49.