Back
20 Mar 2013
Forex Flash: EUR perspective remains bearish – Scotiabank
FXstreet.com (Barcelona) - The bloc currency is extending its correction lower from intraday highs in the vicinity of 1.2980 on Wednesday, as markets are now focusing on the FOMC gathering due later.
There are no real triggers for the price action as rumours were ruling the markets as of late.
“The focus remains on Cyprus, the precedent its bailout potentially sets and the impact of weak political system in times of crisis. The parliamentary vote for the bank levy bail‐in failed to produce even one favourable vote, complicating the outlook for Cyprus even as markets are relieved that guaranteed depositors remain protected”, pointed Camilla Sutton, Strategist at Scotiabank.
“Banks were expected to open tomorrow, but without a negotiated bailout in place, this is likely to be pushed out further. We remain bearish on EUR”, added Sutton.
There are no real triggers for the price action as rumours were ruling the markets as of late.
“The focus remains on Cyprus, the precedent its bailout potentially sets and the impact of weak political system in times of crisis. The parliamentary vote for the bank levy bail‐in failed to produce even one favourable vote, complicating the outlook for Cyprus even as markets are relieved that guaranteed depositors remain protected”, pointed Camilla Sutton, Strategist at Scotiabank.
“Banks were expected to open tomorrow, but without a negotiated bailout in place, this is likely to be pushed out further. We remain bearish on EUR”, added Sutton.