Event risk is building for this weekend as the much-ballyhooed second round of Greek elections gets underway on Sunday. There has been a ban on polling for the last few weeks, so there have been no updates to indicate which way the general electorate is leaning, only adding to the market's uncertainty.

The one-week EUR volatility has gone through the roof as investors scramble to pick up insurance ahead of the big event. Traders have been preferring euro puts, which means downside protection is being favoured over upside protection. But it does seem that the market is squaring into a neutral position for the weekend, not wanting to be caught on the wrong side of a move. Price action in the spot market for the euro seems to reflect this view as well, as it remains very close to the nice round 1.25 figure.

With heightened short-term risk abundant in the market, limit orders and options are a great way to protect oneself in these uncertain times. Get your hedges in before the weekend, as the market seems to be happy to trade sideways until Sunday.