The Euro held close to a 4-month low versus the greenback as investors assess the likelihood that Cyprus may be compelled to leave the Eurozone now that its parliament rejected recently proposed terms of a new bailout package. Market players are hopeful that a compromise will soon be reached which would allow Cyprus to remain in the Euro area and prevent its government from defaulting on its debt obligations. Even so, most currency analysts see nothing but a negative outcome in the making as it relates to the common currency and are wholeheartedly recommending going short on the Euro versus perceived safe haven rivals including the U.S. Dollar, Japanese Yen and Swiss Franc.
As reported at 10:18 a.m. (JST) in Tokyo, the EUR/USD pair was trading at $1.2862, recovering from an overnight low of $1.2843. Meanwhile, the EUR/JPY pair held at 122.27 Yen, though investors are wary of the possibility of additional easing from the Bank of Japan following the installation of the new bank governor tomorrow; the appointee Haruhiko Kuroda, has said that he would aggressively devalue the Yen in order to stimulate the Japanese economy which has endured a prolonged period of deflation.
Cypriot Worries Continue to Lower Euro
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.
... Read more After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.