* Euro eases, but up from previous day's 3-month low
* Political uncertainty in Greece seen as euro negative
* Market positioning may support euro -analyst
* Dlr/yen bids may emerge around Y79.50 and below -trader
By Masayuki Kitano
SINGAPORE, May 8 The euro eased on Tuesday but
stayed above the previous day's three-month low, with market
positioning seen offering the currency some support even as
worries over political uncertainty in Greece clouded its
The single currency dipped 0.1 percent from late U.S. trade
on Monday to $1.3043, but stayed well above Monday's
trough near $1.2955, its lowest level since late January.
The euro had initially come under pressure on Monday after
the outcome of elections in Greece and France cast doubt on the
ability to push through austerity plans regarded as key to
tackling the euro zone debt crisis.
"This seems to me like a pretty serious situation," said
Satoshi Okagawa, senior global markets analyst at Sumitomo
Mitsui Banking Corp. in Singapore, referring to the election
outcomes and political uncertainty in Greece.
The single currency's downside may be limited, however,
since many market players have already taken bearish bets on it,
Okagawa said, adding that other analysts he spoke to recently
held a similar view.
"Everyone says the euro has nowhere to go but down based on
economic fundamentals, but they also say that market players are
already betting in that direction," he said.
Data from the U.S. Commodity Futures Trading Commission
shows that currency speculators still held a relatively large
net short position in the euro in the week ended May 1.
That suggests the euro could gain a lift if short-covering
"It might be hard to sell the euro aggressively, and the
risk may be toward the upside," Okagawa said.
One cloud that hangs over the euro is political uncertainty
A first attempt to form a new Greek government collapsed in
less than a day on Monday, following an election that left
gaping questions over the country's ability to avert bankruptcy
and stay in the euro.
Three Greek finance ministry officials told Reuters the
country might run out of cash by the end of June if it does not
have a government in place to negotiate the next installment of
EU/IMF aid and projected state revenues fall short.
Against the yen, the euro edged up 0.1 percent to 104.40 yen
, having climbed from a three-month low near 103.24
yen hit on Monday on trading platform EBS.
The dollar rose 0.2 percent against the yen to 80.03 yen
. The dollar is likely to attract buying interest at
levels below 79.50 yen or so, said an FX sales trader for a
major Japanese bank in Tokyo.