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The euro is having a big day on the heels of the summit agreement - but this strategist is wary.
When news broke that European leaders had reached an agreement on helping Spain and Italy trim their borrowing costs and creating centralized bank supervision, the euro jumped immediately - and it has largely held onto those gains.
But don't be fooled, says MacNeil Curry, head of foreign-exchange and interest rates technical strategy at Bank of America Merrill Lynch . The bigger trend, he says, "is clearly to the downside," he told CNBC's Scott Wapner. "It's also worth noting what we are not seeing today. You're seeing currencies where the market is very, very short, moved to the topside as investors exit those positions. But in markets where the positioning is much lighter and cleaner, so for example in dollar-yen, it's a much more subdued move if any real move at all."
The same trends are holding true for risk assets generally, he says.
"At this stage in the game, it's best to say that this is a positioning based countertrend move that once it runs its course, we're going to see a resumption of the larger trend for a lower euro and arguably lower risk currencies going forward."
One trade that hasn't been volatile, Curry says, is the euro against the Australian dollar.
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