The Euro took a nosedive during Monday’s Asian trading session on the news that the bailout plan for Cyprus is to include a tax on bank deposits which was seen by investors as a high-risk precedent which might eventually trigger a run on other Eurozone area banks. According to a news release of details, finance ministers in the Eurozone said that that deposit tax was a condition to Cyprus receiving the €10 billion bailout terms; a Parliamentary vote has not yet been taken, however, and there is talk of last minute changes to the proposal in order to lessen the potential impact. Nonetheless, investors are nervous about holding the common currency which resulted in a major sell off.
As reported at 11:25 a.m. (JST) in Tokyo, the EUR/USD pair had lost as much as 1.4% from late trading on Friday in New York, dropping to $1.288 a price which had last been seen in early December; more recently the pair was trading at $1.289. The EUR/JPY pair’s fall was even steeper and the pair is currently trading 2.2% lower at 122.20 Yen, gaining slightly from the session low of 122.04 Yen.
Euro Plunges as Bailout Spooks Traders
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.