Euro Advances on Bailout for Cyprus, Drop Is Still Possible
The performance of the euro shifts and changes as Cyprus continues to remain in the spotlight of the news and the future of the country remains uncertain. For now, the currency has the upper hand, but some analysts are worried that it will not be able to retain the gains.
Cyprus will receive a bailout worth €100 billion. The terms of the deal include losses on deposits over €100,000, but does not mention a bank levy, which many investors have feared. Still, economists are concerned that the confidence in the country’s banking system is already damaged. The euro rallied today on the news about the financial aid, but came off the daily highs and shows potential to go even lower.
EUR/USD was up from 1.2946 to 1.2993 as of 11:30 GMT today, but retreated from the high 1.3047. EUR/JPY traded at 123.15 after rallying from 122.19 to 123.83.
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Earlier News About the Euro:
- Euro Down on Regional Economic Data (2013-03-21)
- Euro Dips as Cyprus Levy Goes to a Vote (2013-03-19)
- Euro Manages to Log Gains after Offering Flexibility to Cyprus (2013-03-18)
- Euro Gains Amid Uncertainty (2013-03-15)
- Euro Shows Weakness after Economic Data (2013-03-13)