EUR took advantage of the verdict to the Cyprus banking future

By GG Analyst in Reviews 0 Comment

EUR/USD

After a week of markets’ and investors’ tortures, Cyprus has eventually found what it can sacrifice to prevent the uncontrolled swift crash of its financial system. Frankly speaking, Cypriots agreed to a slow and gradual dying of their banking sector. You see, in exchange of €10bln from the international creditors (the EU, the IMF, the ECB) Cyprus makes the second largest creditor of the country – Laiki- a “poor bank”, which in addition to its own debts will get toxic debts of the Bank of Cyprus. Deposits above 100K won’t suffer restructing and won’t be taxed. However, big investors may lose more…

Keep stimulating growth

By GG Analyst in Reviews 0 Comment

EUR/USD

The persistent buying of the single currency yesterday let it rise to the consolidation area of Monday and the first half of Tuesday. Regarding Cyprus it is rumoured that Russia is negotiating buying of one of the Cypriot banks or shares in several banks. Besides, they say that , letting Gazprom in, Cyprus is staking on the future earning from gas. Neither of the rumours hasn’t been confirmed yet. In the meantime, the banks of Cyprus are still closed as the parliament hasn’t taken any decision on the deposits yet. Most likely, Cyprus will be postponing it till all the thinkable more…

Waiting for Cyprus and the Fed

By GG Analyst in Reviews 0 Comment

EUR/USD

As was widely forecasted by skeptics, including us – the government of Cyprus didn’t come up to the final decision on the bank deposit levy. None of the parliamentarians supported the initial plan: 36 voted against and 19 abstained. And though many believed that the shift of the burden to larger deposits would be treated positively, so far traders have preferred to sell the single currency. Yesterday EURUSD hit a fresh low since last November. The stock markets from time to time stumble over sales – the current bounce off the highs looks quite moderate from the historic point of view. more…

Waiting for real action

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday afternoon the market was trying to recover after the morning negative. The major incentive to purchase the euro was given by the news that Cyprus would like to reconsider the levy for investors with smaller deposits (up to €100K). A bit later we learnt that the EU also didn’t have anything against it. The only thing that worries the officials now is not to allow the total amount of money that Cyprus will allocate to keep its own domestic banks afloat go above the estimated 5.8bln. Besides, it is widely believed in the markets that Cyprus cannot be treated as more…

Spain takes Italy’s investors

By GG Analyst in Reviews 0 Comment

EUR/USD

All that Italy didn’t get went to Spain. Here we speak about the debt auction that was held in these countries on Wednesday and Thursday accordingly. EURUSD reacted accurately to the markets’ message. If on Wednesday it was decline due to the low investor demand, yesterday the single currency was brought back nearly to the same levels: it’s again trading a bit above 1.30. Yet, it’s worth mentioning that weakness of the dollar also contributed to sales of the euro. It arose on the decreased concerns that the high demand of the US households would boost price growth. As we see more…