News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Bond markets will be on edge all week, with several measures of inflation due from around the globe (Mexico, China, US, Australia, Brazil, Germany, and India). Get your market update from @CVecchioFX here:https://t.co/DO83Zc6UQu
  • Bitcoin bears exert force, driving Bitcoin back below the 50k psychological level BTC/USD support showing around a Fibonacci level. Get your $btc market update from @Tams707 here:https://t.co/2Kf1ZV0PjC https://t.co/B3XO6V3QYD
  • Time to break out some ratios like commercial real estate property tickers (eg $SPG) relative to Amazon ($AMZN) or Carnival Cruise ($CCL) relative to Netflix ($NFLX)
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.07% 🇬🇧GBP: -0.11% 🇦🇺AUD: -0.42% 🇪🇺EUR: -0.54% 🇳🇿NZD: -0.59% 🇨🇭CHF: -0.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/VvEMwfDftX
  • Rising yields (the aggregate yield I mentioned earlier is overlaid and inverted in red here) is dragging gold lower. The 60-day correlation (3 trading month) between $GC_F and yields is the strongest net negative since Oct 2019 https://t.co/Myo0FlsvJA
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.42% Silver: -0.47% Gold: -1.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fxdEWv4bfo
  • The Australian Dollar now risks a deeper March correction with the AUD/USD price reversal approaching multi-month uptrend support. Get your $AUDUSD market update from @MBForex here:https://t.co/jYfBrd5b22 https://t.co/tbU9BM3n3L
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.43%, while traders in Germany 30 are at opposite extremes with 80.92%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/W16EBX7wwK
  • US equities end the day mixed, as market participants continue to rotate $DOW 31801.91 +0.97% $SPX 3821.22 -0.54% $NDX 12299.0 -2.92% $RTY 2202.99 +0.49% $VIX 26.24 +6.41%
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.01% US 500: -0.01% France 40: -0.28% Germany 30: -0.29% FTSE 100: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/LqhrKYMQFh
Cypriot Banks to Open, Can Euro Hold?

Cypriot Banks to Open, Can Euro Hold?

Renee Mu, Jason Shemtob,

OPEN

HIGH

LOW

LAST PRICE

CHANGE %

USDOLLAR

10454.26

10489.14

10452.16

10482.31

0.300356

EURUSD

1.2861

1.2867

1.2751

1.2779

-0.637586

GBPUSD

1.516

1.5181

1.5093

1.5128

-0.204499

USDJPY

94.45

94.91

94.02

94.44

0

AUDUSD

1.0485

1.0486

1.0418

1.044

-0.429185

The Dow Jones FXCM US Dollar Index rallied on the euro weakness in the past session. Tomorrow Cypriot banks will reopen after nearly two-week lockdown. The country’s government decides to put tight capital controls on bank accounts in order to prevent a mass flight of deposits. Yet, when the withdraw restriction is lifted in a week or longer, the money is going to leave anyway as depositors seek to reduce their holdings in banks amid fear of further loss.

Increased money demand and fixed monetary supply (Unfortunately Cyprus can’t issue more euro) will push interest rates higher to reach a new equilibrium. However, real interest rates to depositors especially who hold large accounts have been cut sharply and even turn negative because of the bail-in program. The economic imbalance will lead to a jump in inflation and decline in output, which means the sovereign debt crisis is far from over, and the euro still faces downside pressure. A good lesson to investors is to think cautiously before make any investment in such lightly-regulated countries. It is easy to lend money but it might take forever to get it back like the struggling Cypriot creditors.

On Monday, the leading Eurozone Finance Minister Dijsselbloem suggested that the Cyprus deal could be a future template in dealing with troubled banks. European officials later backtracked his comments, but also said preferred bank restructuring than using taxpayer’s fund to save banks. It therefore raises concerns in Italy, Greece and other Euro-area countries with financial problems – will their depositors suffer a similar loss one day? One possible reaction of creditors is to withdraw money from local banks and transfer to countries with more stable banking system either inside or outside the euro-zone. An increasing capital outflow will dampen the existing crisis and reduce demand for the euro.

The downside pressure for euro not only comes from Cyprus but also from the third largest economy in region. Italian Democratic Party leader Bersani said that Italy was in a “dramatic situation” and needed “a government which performs miracles”, as he had few options left after ruled out an alliance with People of Freedom. If he failed to form a functioning government, the president can tap someone else to try to create a coalition or he can call for a new election. Yet both will add more uncertainties to the market and may further drag down the euro.

Economic Calendar

Date

Time

Currency

Event

Importance

Forecast

Previous

Thu

Mar 28

00:01

GBP

Gfk Consumer Confidence Survey(Mar)

Medium

-27

-26

08:55

EUR

German Unemployment Change (Mar)

High

-2K

-3K

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES