FX Weekly: 9th May 2011

 Commodities suffer sharp retracements across the board; exacerbated by steeper margin requirements on Silver

 Risk-off environment raised FX volatility but Equity volatility remained stable

 Restructuring of Greek debt (haircuts) and Greek EMU exit have both become very realistic outcomes; severe EUR weakness could be short-lived because Greek exit would be EUR positive long-term

 Q2 earnings should fade as a market theme this week – macro data is key with China, Europe and US all publishing key macro figures




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