FXstreet.com (Barcelona) - The market is "willing to give the ECB the benefit of the doubt despite Spain and Italy's aversion to the EFSF", but as the euro is too expensive in average terms to buy outright, JP Morgan analysts will be monetizing the ECB's backstop by selling euro puts versus those European currencies that have most obviously benefited from safe-haven flows: sell a 2-mo EURSEK put (strike 8.30, RKI 8.20) and buy NZD/SEK in cash. JP Morgan analysts are also still short on EUR/MXN, EUR/KRW, NZDCAD, NZD/NOK, GBPJPY, AUDUSD and PLN/HUF.

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Forex pairs in this Article » AUD/USD, EUR/SEK, GBP/JPY, NZD/CAD

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