In its weekly note to clients today, BNP Paribas assess the FX response to this weekend’s Greek referendum, outlining the potential EUR response to a Yes/No vote along with the best EUR trade to position for such an event. Good news for Greece is bad news for the EUR. "We continue to believe that good news on Greece represents bad news for the EUR. The ECB’s quantitative easing programme (QE) is the key factor driving down the EUR, as the single currency is used as the key funding currency for FX carry trades. EURUSD is overvalued versus 2y rate spreads. Disappointing headlines on Greece produce a risk-off ... (full story)