Covering short euro positions now is one thing. Taking long positions in the single currency is entirely another. It is why this little euro rally won’t last. The latest bout of short-covering is hardly surprising given the extreme level of speculative short positions, talk that Germany may yet allow Spain to get a soft bailout and signs that major central banks may start to ease policy again. It is the two “mays” on which euro buyers really need to concentrate. The latest twist in the Spanish saga has Germany relenting to international pressure to come to Spain’s rescue before the country’s banks start falling ... (full story)