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18 Mar 2013
Forex: EUR/USD hovering over 1.2900 after Cyprus
FXstreet.com (Barcelona) - The single currency opened sharply lower on Monday after the bailout in Cyprus spooked market participants and intensified the fears surrounding depositors’ funds.
“Perhaps the most negative aspect of the Cyprus development is the uncertainty over how long it takes for its parliament to agree on depositor haircuts. The longer it takes the longer the bad taste stays in the mouth of all involved. Most of the criticism of the plan relates to the haircut faced by smaller depositors, and this is likely to generate considerable disagreement and debate in parliament”, commented Greg Gibbs, FX Strategist at RBS.
At the moment, the cross is down 1.31% at 1.2904 with the next support at 1.2881 (low Dec.10).
ON the upside, a breakout of 1.3111 (MA21d) would open the door to 1.3129 (MA100d).
“Perhaps the most negative aspect of the Cyprus development is the uncertainty over how long it takes for its parliament to agree on depositor haircuts. The longer it takes the longer the bad taste stays in the mouth of all involved. Most of the criticism of the plan relates to the haircut faced by smaller depositors, and this is likely to generate considerable disagreement and debate in parliament”, commented Greg Gibbs, FX Strategist at RBS.
At the moment, the cross is down 1.31% at 1.2904 with the next support at 1.2881 (low Dec.10).
ON the upside, a breakout of 1.3111 (MA21d) would open the door to 1.3129 (MA100d).