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[OctaFX_Farid]

Forex: USD/CAD retreats after Canadian GDP

The Canadian dollar strengthened and dragged USD/CAD back from highs after data showed Canadian GDP grew 0.6% in Q4 2012, in line with market expectations, while the previous reading was upwardly revised to 0.7% from 0.6%.

USD/CAD pulled back from an 8-month high of 1.0341 scored right before the data, and slid toward 1.0300. At time of writing, USD/CAD is trading around 1.0305/10, where it is virtually unchanged since opening.

In terms of technical levels, the pair could face immediate supports at 1.0300 and 1.0260 (100-hour SMA), while resistances are seen at 1.0341 (intraday high) and 1.0360 (Jun 28 high).

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Mar 01, 2013

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[OctaFX_Farid]

Forex: GBP/USD consolidating below 1.5050

The sterling keeps the bearish mood below the 1.5050 level on Friday, dragged lower after softer-than-expected data from the UK manufacturing PMI print.

“The UK authorities have a de facto weak pound policy and will be all the more committed to it now. The economy is flirting with a return to recession, monetary policy is out of juice, and GBP/USD is heading for an imminent break of 1.50. After that, a shift to a test of $1.40 will follow on a 6-month time horizon”, argued Kit Juckes, analyst at Societe Generale.

GBP/USD is losing 0.92% at 1.5022 facing the next support at the psychological level at 1.5000 followed by 1.4949 (low Jul.12 2010) and then 1.4873 (low Jul.1 2010).

On the upside, a breakout of 1.5173 (hourly high Mar.1) would expose 1.5223 (high Feb.28) and then 1.5235 (MA10d).

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Mar 01, 2013

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[OctaFX_Farid]

Forex: EUR/USD closes just above 1.3000; 1.29 vital area

One month and 745 pips later, the EUR/USD has been brought to earth from the February 1st high at 1.3710 to Friday March 1st bottom at 1.2965. However, the euro managed to recover some ground and following the US President Barack Obama speech on 'sequester', the pair has closed above the 1.3000 key level. Is time for bears now? Let see...

The EUR/USD closed Friday at 1.3020, around 0.30% negative on the day. In the 1-day chart, MACD, CCI and Momentum indicators points bearish while Stochastic is bull. In a wider windows the picture changes as MACD, CCI and Momentum are bullish with a stochastic neutral in the 1-day timeframe.

It seems there are signs of a changing trend as the EUR/USD has experienced 4 weeks of losses and the BPI is indicating that EUR is rising from 15.79 and the USD is above the 90 level. However, according to the FXstreet.com EUR/USD Forecast, the mid and long-term forecasts for the euro are 300 pips lower than last week.

According to TD Securities FX analysts Shaun Osborne and Greg Moore, there is still hope for Euro bulls if the pair remains above the 1.28/29 area. "Four weeks of successive losses keeps the EUR on track to test the 1.28/1.29 area (40-week/200-day MA/neckline of the huge, multi-month inverse H&S neckline that drove our late 2012/early 2013 bullishness on the EUR)."

"Holding this support zone (we can tolerate some temporary weakness below) is vital in sustaining a longer-term bull outlook," state both analysts.

But what's going on in the fundamental area? Sequester is fueling the risk aversion and the USD is joining it due its safe haven status. Meanwhile, the Italian disaster is looming in the Euro sentiment. As UBS' analysts Geoffrey Yu and Manik Narain well said in a recent report, "it will be interesting to see how the ECB responds after the Italian election and a return in risk aversion. "

Expectations will be the theme in the coming week as the RBA, BoC, ECB, BoE, and BoJ are expected to hold policy meetings. Beside Mario Draghi, nominated BoJ governor Haruhiko Kuroda will have his first speech and market will pay special attention on what he will say to support, or not, the JPY weakening. USD/JPY finished the week above the 93.50 level.

On the North American side, President Barack Obama said that the U.S. "will get through this, will not be an ‘Apocalypse’”. Earlier in the session, House Speaker John Boehner affirmed that there is still time to reach an agreement during the incoming week. Meanwhile, both Republicans and Democrats continue to kick the can down to each others backyard.

The Banking Week Ahead

As noted before, RBA, BoC, ECB, BoE, and BoJ will publish their monetary policy decisions. Despite some market voices are asking for a rate cut in the ECB, major expectations are that Draghi and his team will maintain his refi rate unchanged. The point of salt will come with the president's press conference.

US unemployment data and its Non Farm Payrolls, the European, Australian and Japanese Q4 GDP and the size of the BoE's APF will also take the market attention.

Major events

- ECB Interest Rate Decision (Mar 07 12:45 GMT)

- BoE Interest Rate Decision (Mar 07 12:00 GMT)

- BoJ Interest Rate Decision (Mar 07 02:00 GMT)

- U.S. Unemployment Rate (Mar 08 13:30 GMT)

- U.S. Nonfarm Payrolls (Mar 08 13:30 GMT)

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Mar 02, 2013

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[OctaFX_Farid]

Forex Flash: FLS fails to firefight monetary arson - Nomura

Nomura Economist Phillip Rush notes that there is little evidence that Funding For Lending (FLS) is imparting much stimulus.

He writes, “We do not believe it can do in the presence of strict regulatory pressure to deleverage. Nor is it tying sufficient funding to Bank rate for a cut to be worthwhile. Increasingly repressive policies are being brought up, but softer communication changes are likely to come first, in our view.”

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Mar 04, 2013

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[OctaFX_Farid]

US markets in red as Chinese woes loom

Equities in the US markets are trading in the defensive position at the beginning of the week, as the likeliness of Chinese measures to counteract the worrying bubble in the housing sector could hamper the recovery of the domestic demand. The greenback, gauged by the US Dollar Index, is trading flat above the 82.00 mark, as markets remain directionless so far.

DownJones is down 0.33%, followed by the S&P500, 0.29% and the Nasdaq, 0.36%.

Markets in Euroland closed in the mix territory on Monday, as China and the so-called US ‘sequester’ undermined investors’ confidence. The IBEX35 advanced 0.72%, seconded by the CAC40, 0.27% while the FTSE100 and the DAX retreated 0.52% and 0.21%, respectively. The single currency is clinging to the 1.3000 level and trading in a narrow range between 1.2980 y 1.3020, reflecting the lack of direction in the markets.

In the commodities space the barrel of WTI is extending the recent bearishness, losing 1.17% at $89.63 while the ounce troy of the precious metal is posting meagre gains at $1572, or 0.02%

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Mar 04, 2013

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[Marico Trade]

thanks
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[OctaFX_Farid]

Troika to suggest loan extension options for Ireland and Portugal and resume aid talks with Cyprus

At the press conference ending the two-day Eurogroup meeting on Tuesday EU Commissioner for Economic and Monetary affairs Olli Rehn assured that the the Troika would resume bailout negotiations with Cyprus as soon as possible, with an aim of reaching the final deal at the end of March.

As far as the extension of bailout loan maturities for Ireland and Portugal is concerned, Rehn said that it had been agreed that the Troika should consider establishing a new debt repayment schedule for a part of the loans. The final decision would be announced in April at the next Eurogroup meeting in Dublin.

The question of restricting bank bonuses, supported by all Eurozone officials except for UK Chancellor George Osborne, will be further examined from the side of technical details and put to vote in the nearest future.

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Mar 05, 2013

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[OctaFX_Farid]

Fundamental Afternoon Wrap: Euro PMIs and Central Bank meets in focus

This afternoon institutional report reflects market mood today, with focus falling on the key central bank meetings later in the week and the stablising European services PMIs today. There is a feeling that absent sudden Italian developments, EUR/USD may struggle to decline much further, while in the UK the shock of Manufacturing PMIs was offset by today's numbers.

EUR

Brown Brothers Harriman analysts note that Euro area service PMIs showed a bit of improvement from the 47.3 flash reading, rising to 47.9. However they add that the real take away and one not lost on the foreign exchange market which sold into the euro's bounce, was that the February reading was weaker than the 48.6 reading seen in January. ING economist Martin van Vliet notes that the sharp increase in retail sales raises hopes that the consumer sector will be less of a drag on the Eurozone economy in the first quarter of this year. Overall, he feels that the tentative signs of stabilisation in retail sales, coupled with the upward revision to the earlier “flash” Eurozone composite PMI (to 47.9 in February), reinforces his belief that the ECB will keep interest rates on hold on Thursday.

Jane Foley of Rabobank feels that despite the downside risks, on the back of the QE headwinds undermining USD, she is reluctant to call lower lows on EUR/USD. However, the Italian situation looks like a wildcard that needs to be monitored. Nick Bennenbroek of Wells Fargo notes that the euro is up on firmer than expected data and with some indications surrounding the European Union finance ministers meeting that more flexibility surrounding Europe’s austerity plans may be possible.

GBP

Brown Brothers Harriman analysts note that after reporting weak manufacturing and construction PMIS, the UK reported a better than expected CIPS service PMI, the highest reading since last September. BNP Paribas economist Catherine Stephan notes that in February, activity accelerated again in services, with the good news partially offsetting the poor performance in the manufacturing sector. Overall the PMI composite Index remained in expansion territory.

USD

Marc Chandler of Brown Brothers Harriman notes reports from the YS Commerce Department that estimate hat the dollar value of US exports rose sharply last year to $2.2 trillion which means that US exports appear to have surpassed Chinese exports, which the Chinese government estimates at $2.05 trillion.

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Mar 05, 2013

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[OctaFX_Farid]

Forex Flash: Policy-related drivers continue to dictate currencies – UBS

With the dust settling post-RBA, it is worth revisiting some of the non-policy related drivers behind the currency. As always, positioning comes to the fore. On a structural level, we have highlighted for some time that the amount of inflow into liquid 'super-AAAs' over the last 18 months have had the effect of insulating the currency from wider risk swings, both helping lowering the beta on the AUD and secularly compressing implied volatility.

Although the demand was there, the currency actually underperformed all other currencies in G10 bar the JPY. Investors need no reminder of the economic and political volatility out of China last year, where hard landing fears were not alleviated until late in the year, and in hindsight, only briefly. As such, “a China risk premium was already being priced into the AUD. Hence, when the big 'AAA-unwind' in favor of the EUR actually happened, and despite unfavorable commentary from the RBA, compared to the NOK and CAD, AUD hasn't really done that poorly due to the perception that it was always more at risk.” notes Research Analyst Gareth Berry at UBS.

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Mar 05, 2013

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[OctaFX_Farid]

Forex: GBP/USD testing support at 1.5080 after US ADP

The GBP/USD has fallen on the heels of a upbeat economic data in the United States Wednesday. A previous upside attempt was halted at 1.5104, causing the pair to decline at the onset of American trading in recent moments. At the time of writing, the cross has settled at 1.5073/76, down -0.35%.

According to the ICN.com Analyst Team, “The GBP/USD dropped during today’s session before rebounding to 1.5100 levels. Trading below 1.5190 levels is negative; RSI is trading with a negative bias below 50 supporting our expectations.”

In the United States, the ADP Employment Change (February) came in at 198K, against expectations of 170K, and compared with 192K previously. Later today at 15:00 GMT investors will learn of the Factory Orders figure, which will shine more light on the status of the US economy.

The ICN.com analysts point to supports at 1.5080, followed by 1.5035, and the 1.5000 barrier. On the positive side, the GBP/USD will encounter resistive means at 1.0260, then 1.5130, 1.5190, and ultimately 1.5225.

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Mar 06, 2013

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[OctaFX_Farid]

Forex: EUR/USD dropping further after surprising US ADP

The EUR/USD is entering new daily lows as the NY session opens and US factory orders are still to come. The pair is pressing down again, below 1.3019 (low printed on the release of US ADP employment data).

US ADP employment has surprised investors by adding 198K jobs in February, instead of 170K, and revising January's figure from from 192K to 215K. US factory orders are expected to drop -2.2% in January, more than erasing the previous 1.8% gains.

“With the ECB tomorrow though we are likely to see more consolidation today”, wrote TD Securities analysts Shaun Osborne and Greg Moore. “For EUR/USD, key intraday resistance comes in near 1.3075, and we continue to favor an extension lower toward the upper 1.28/low 1.29 area in the next couple weeks”, they added.

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Mar 06, 2013

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[OctaFX_Farid]

Forex Flash: USD strengthens against metrics – ANZ

According to the ANZ Research Team, “Our broader view has been to anticipate, as the global economy repaired itself, that the US dollar would stay soft against a range of currencies, particularly those in Asia and the EUR; and for the AUD and NZD to remain at high levels despite stretched valuation metrics.” Against this view, the dollar has strengthened particularly strongly since early February, and against some currencies since early January. Following this, a consensus seems to have emerged that the dollar's strength has been driven by US recovery expectations, and that this strength is likely to persist.

This is not the first time in recent years that a relative growth argument for dollar strength has been consensus. For us the key question is whether the dollar has rallied because recovery expectations are gathering momentum and the US is leading those, or have recovery expectations in fact, suffered a setback, contrary to our cyclical expectations. In other words, is there something wrong with our framework, or has our macro call just suffered a bit of a setback?

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Mar 06, 2013

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[OctaFX_Farid]

Forex Flash: Growth shocks in US unlikely to trigger downside for CAD – UBS

Canada's key export sectors - manufacturing and energy - are not enjoying the best of demand conditions, and given the heavy exposure to the US, any growth shocks arising from sequestration in the US would be strongly felt by the Canadian labor market. Canada's current account - although at manageable levels - is struggling to recover and this serves as an immediate deterrent to longer-term investors.

As such, “it would probably take more time and data confirmation for such trends to materialize, and we do not expect them to serve as valid triggers for CAD downside on a tactical level.” notes Research Analyst Gareth Berry at UBS.

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Mar 06, 2013

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[OctaFX_Farid]

Forex: EUR/GBP back to 0.8700 ground after ECB

Despite GBP strength on BoE's decision of keeping its policy as it was (rate at 0.5% and QE at £375B), the EUR boosted particularly on Draghi's press conference where he gave an upbeat speech, underlining his confidence in Eurozone's economic recovery.

The EUR/GBP drop on the BoE was supported around 0.8640, and then the cross shot back up and moved above the 0.8700 line. As of writing, the market trades at 0.8708 (+0.79%) and has printed its daily high at 0.8715.

“EUR/GBP is moving in a horizontal range between the support at 0.8572 (13/12/2013 low) and the resistance at 0.8815 (25/02/2013 high)”, wrote MIG Bank analyst Bijoy Kar, pointing to an hourly resistance at 0.8685 (01/03/2013 high).

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Mar 07, 2013

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[OctaFX_Farid]

Euro finds its way to 1.3100

The dollar weakened broadly during the New York session and fell versus most competitors after the global central banks remained on hold at today's monetary policy announcements.

The euro advanced, moving off recent lows sub-1.300, after the ECB held its interest rates steady. In the subsequent conference, ECB President Mario Draghi said that even though the decision was not unanimous, the ECB never precommits. Draghi also sounded optimistic by saying the economy will gradually recover and played down the Italian elections effects on the eurozone.

Comments from Draghi alongside better-than-expected US jobless claims helped to boost the EUR/USD which rose above 1.3100 for first time in a week. So what's ahead for the EUR/USD after the ECB? Tomorrow's US jobs report should provide some direction for FX markets heading into next week.

"As the week has progressed the here been some improvement in market sentiment, helping to support gains in U.S. European equities and many foreign currencies", says Nick Bennenbroek, Head of Currency Strategy at Wells Fargo Bank. "Should the U.S. jobs report show a solid gain tomorrow the commodity and emerging currencies could rise further, though we are more cautious on prospects for the euro, yen and pound".

Euro rises to 1.3100. Could it hold gains?

After today's rally, EUR/USD technical indicators have turned positive in the short-term supporting a steeper correction. However, as hourlies reach overbought levels and ahead of the NFP report, the cross will likely see a period of consolidation before another leg higher. The EUR/USD would still need to regain the 1.3160 area (Feb 28 high) in order to challenge the broader bearish bias.

On the downside, a break below 1.2965 (March 1 & 6 double bottom) would expose the 1.2900/08 zone (psychological level/ Fib 76.4% of 1.2660/1.3710).

Commenting on today's EUR/USD advance, Christopher Vecchio, Currency Analyst at DailyFX says that the rally could be short-lived, especially if tomorrows US Nonfarm Payrolls report for February lives up to the hype (+170K expected). "The growing divergence between the Euro-zone and US economies will be too apparent to keep the EURUSD bid on President Draghi’s 'hopes' for an economic recovery, despite no new policies on either the fiscal or monetary side that would indicate otherwise", he comments.

Meanwhile, on a wider view, TD Securities analysts note that if the market takes today's ECB tone too strongly, we could once again find ourselves in a replay of January-February, where Euribors and euro move so much that the ECB must then take another dovish tack to keep market expectations in check. "1.3150-1.3200 is a key risk area for EUR/USD as a push through there would likely bring more upside risk", TD team says.

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Mar 07, 2013

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[OctaFX_Farid]

Forex: USD/JPY in multi-year highs above 95.00

The Japanese yen fell beyond 95.00 against the US dollar on Thursday, levels last seen in August 2009 as the bearishness surrounding JPY intensifies.

“Our outlook is fairly neutral very near term, longer term we remain bullish. Currently we remain unable to rule out a slide back to trendline support ahead of another leg higher. We can see that the market remains clearly under pinned by trend line support at 91.29”, assessed Karen Jones, Head of FICC Technical Analysis at Commerzbank.

At the moment, the cross is up 0.92% at 94.92 with the next resistance at 95.77 (low Mar.2008 low) followed by 97.79 (high August 2009) and then 98.86 (high June 2009).

On the downside, a break below 93.79 (low Mar.7) would clear the way to 93.15 (low Mar.6) and finally 92.91 (low Mar.5)

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Mar 07, 2013

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[OctaFX_Farid]

Canada: Unemployment remained at 7.0% in February

The Canadian jobless rate during February matched January’s at 7.0, bettering estimates at 7.1%.

The Net Change in Employment rose to 50.7K from -21.9K previous and 8.0K expected, while the Participation Rate rose a tad to 66.7% from 66.6%.

The Labour Productivity rose 0.1% QoQ during the fourth quarter, bettering the prior print at -0.4% and surpassing estimates at 0.0%.

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Mar 08, 2013

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[OctaFX_Farid]

American equity markets edge higher on upbeat US data

The US Stock market experienced a positive opening Friday after upbeat data in the United States. Earlier in the US, the highly anticipated Nonfarm Payrolls (February) came in at 236K, against projections of 160K and compared with 157K previously. Unemployment Rate (February) has also steadied at 7.7%, which beat expectations of 7.9%.

Beginning with the indices and composites, the NASDAQ rose +0.34% as it settles in region of 3243.09, up +10.96 points in these moments. In addition, the S&P 500 is trading in positive territory, operating at 1548.72, ascending +4.74 points or +0.31% at the time of writing. Finally, the Dow Jones has moved higher at the opening, trading in the zone of 14382.71, presently +0.37% after a movement of +53.12 points.

Sectors are all green currently, however the Capital Goods and Transportation sectors have distinguished themselves as main winners thus far, jumping +0.76% and +0.72% respectively. In other news, the price of crude has settled below USD $91.43/bbl Friday.

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Mar 08, 2013

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[OctaFX_Farid]

Session Recap: Strong nonfarm payrolls boost the greenback

The main feature of the session was the US nonfarm payrolls report which came in surprisingly strong, boosting the greenback versus main competitors except for the loonie. The government reported the US economy added 236,000 new jobs, against 160,000 expected, while the unemployment rate fell to 7.7%, 5-year low, from 7.9% the previous month.

Despite the risk appetite boost, which usually is negatively correlated to the USD, the greenback surged as the positive figures lower prospects of further easing by the Fed. Unemployment rate is inching closer to the Fed's 6.5% target for when it will consider withdrawing easing measures.

Main Headlines in Europe (in chronological order):

Switzerland: Inflation up 0.3% in February, as expected

Forex Flash: What does EUR/USD has to offer? – UBS and Commerzbank

UK: Consumer Inflation Expectations up 3.6% in March

Greece: Inflation rises 0.1% in January

Fundamental Morning Wrap: Draghi plays chicken for structural reform as NFP climb expected

Germany: Annual Industrial Production decline accelerates in January

IMF's Lagarde upbeat on Ireland's economic prospects

Euro looks to Payrolls for extra boost

European markets resume yesterday's sentiment, US futures up ahead of NFP

ECB and BoE easing risks remain finely balanced - TD Securities

US: NFP rose to 236K in February

Canada: Unemployment remained at 7.0% in February

USD/JPY soars above 96.50 on strong NFP

Commodities Brief – Precious metals decline sharply following upbeat US payroll data, crude held in check

Forex: EUR/USD hits fresh 3-month low

American equity markets edge higher on upbeat US data

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Mar 08, 2013

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[OctaFX_Farid]

Fundamental Afternoon Wrap: NFPs roar

A understandably quiet afternoon for institutional research has seen an obvious focus on NFPs which shattered expectations and some reflection on Draghi´s performance yesterday and the implications looking forward.

USD

BNP Paribas economist Alexandra Estiot comments on today's impressive NFP numbers commenting the trend is good and supportive for households’ purchasing power and confidence. However, they are not expecting the Fed to react yet. Marc Chandler of BBH notes that the US jobs data was consistent with the recent string of data, clearly showing a surprising resilience to the anticipation of tightening of fiscal policy. Rob Carnell of ING notes that following today´s NFPs he feels that the near term market reaction will be to sell the back end of the yield curve, and for equities and the dollar to rally, most notably against JPY and GBP:

EUR

Reflecting on yesterdays ECB meet, the European economics team at BAML comment that the policy statement was as usual bland but that he highlighted the point that the ECBs policy was extremely accommodative and how committed the ECB is to maintaining its stance. The interesting part for them was the near near commitment to monetary policy by Draghi, by ensuring that it would keep liquidity available at low rates for as long as necessary and would monitor short term “eonia, both spots and forwards.” Brown Brothers Harriman analysts comment on the resilience of the Italian asset markets, despite the lack of progress towards political clarity.

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Mar 08, 2013

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[OctaFX_Farid]

China Urban investment (YTD) (YoY) up to 21.2% in Feb from 20.6%

Read more in Forex News

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Mar 09, 2013

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[OctaFX_Farid]

Forex: USD/CAD retraces intraday gains

The dollar continued to lose ground versus commodity currencies and the euro at the beginning of the NY session in a sudden spark of risk appetite, although with no clear catalyst, dragging USD/CAD back to opening levels.

After failing to overcome the 1.0280 area, USD/CAD turned lower and dropped nearly 25 pips within the last minutes, erasing most intraday gains. At time of writing, the cross is quoting around 1.0265, just a few pips above its opening price.

As for technical levels, the Mataf.net sees immediate supports at 1.0250 and 1.0230, while they place resistances at 1.0280, 1.0315 and 1.0335.

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Mar 12, 2013

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[OctaFX_Farid]

Forex Flash: NZD/USD buy on dips – Rabobank

The kiwi dollar is bouncing off session lows in the vicinity of 0.8230, gathering traction to the boundaries of 0.8260, ahead of the RBNZ meeting due tomorrow.

According to Jane Foley, Currency Strategist at Rabobank, the NZD is facing opposing forces coming from the current drought hitting the North Island, the fiscal austerity and the strong kiwi weighting on the exports sector on one side, and positive momentum in the construction sector from the Christchurch rebuild, on the other.

Although consensus remains for the central bank to leave the refi rate unchanged, market participants expect the RBNZ to hike rates at some point during this year. “Despite the relatively high value of the NZD, in view of investors’ continued demand for yield we expect the NZD to hold its ground vs. the USD this year. We would look to buy NZD/USD on dips and expect a re-test of the year’s high in the USD/NZD0.8535 on a 3 to 6 mth region”, concluded Foley.

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Mar 12, 2013

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[OctaFX_Farid]

Forex: EUR/USD pulls back to 1.3040 after NY opening

The EUR/USD climbed the chart in time for the New York opening, having reached the 1.3074 high, but later taking profits on the up move and easing to 1.3040 area, where it is currently sitting.

In the week ending at March 3, the yearly rise of the Redbook index was from 2.2% to 2.7% after a weekly change of +0.6%.

February business optimism rose from 88.9 to 90.8 in February, but market consensus was aiming at 91.3, which means a disappointing result according to NFIB data.

Germany WPI came in at 0.1% in February (MoM), below 0.3% consensus. CPI and HICP came in at 0.6% and 0.8%, respectively, as expected. France current account deficit widened from €-3.8B (revised from €-3.6B) to €-5B in January.

“I think today the pair may grow up a little bit to reach the level of 1.0335 and then reach a new minimum again, this time at 1.2940”, wrote Roboforex.com analyst Igor Sayadov, expecting the pair to start moving upwards and form a pivot point for a reverse. “The next targets may be at the levels of 1.3190 and 1.3400”, he added.

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Mar 12, 2013

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[OctaFX_Farid]

Troika negotiating a smaller bailout with Cyprus

According to Newswires, officials have said that the Troika mission is negotiating a significantly smaller bailout with the Cyprus government on the back of a higher privatization proceeds.

The bailout would be of EUR 10B instead of the EUR 17B expected by expert. This change would help to bring debt-to GDP ratio to 100% in 2020.

The EUR/USD is trading at 1.3030 after declining from 1.3070 in the last two hours. Against the Pound, the Euro is declining hard from 0.8790 to the 0.8735.

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Mar 12, 2013

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