Bond sellof lifts EUR-USD

The reason for the strong reaction in EUR-USD is more likely to be the bond market. It was sufficient that Draghi did not find any reasons to use concerned words. Clearly euro zone bonds were already under so much pressure that was enough to cause their sell off to continue. In the end 10-year Bunds recorded a rise in yields of approx. 40 bp - within two trading days. And as US yields only rose by a mere 10 bp over the same period this results in a considerable EUR-positive effect. 

According to Societe Generale, "the realisation is likely to grow that tomorrow when Greece has to pay the next tranche to the IMF the lights will not go out in Greece - regardless of whether the Greeks somehow manage to scrape together the money or not. The Greece story has very few direct effects on EUR exchange rates. But when things get so hot on the bond market - partially because of the news from Greece - the FX market is unable to ignore that".