Cyprus uncertainty sees euro drop

<p>The euro has continued to drop amid concerns over Cyprus.</p>

Concerns over the ongoing talks about a bailout for Cyprus have led to the euro falling again.

The single currency edged down again for the second session in a row as investors awaited the result of a vote on the controversial measures.

Joe Manimbo, senior market strategist at Western Union Business Solutions in Washington, explained the impact of a bailout could be major.

"The uncertain outlook for Cyprus carries potential negative knock-on effects for other eurozone nations which should keep near-term pressure on the single currency," he told Reuters.

But Sebastien Galy, currency strategist at Societe Generale in New York, stated it is a good sign the euro has not fallen even further.

The single currency was recorded as having slipped 0.1 per cent against the dollar to $1.294 this afternoon (March 19th).

Today also saw the Stoxx 50 drop by almost one per cent, though it remains up by 1.67 per cent on the start of the year.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.