Euro bashed on Dijsselbloem remarks

<p>The single currency opened in Europe this morning just around the 200 DMA of 1.2880 which supported all of last week after making a low […]</p>

The single currency opened in Europe this morning just around the 200 DMA of 1.2880 which supported all of last week after making a low of 1.2830 in the US session yesterday. The Cypriot crisis was averted in typical European fashion of as the breakup of the Cypriot banking sector was confirmed with Laiki Bank becoming a ‘bad bank’ and the Bank of Cyprus to be a ‘good bank’, the later will be capitalised with the deposits under 100k EUR of the former but what has really got the euro reeling are comments made by the Dutch Finance minister who heads the euro group of EU finance ministers that CYPRUS BANK RESTRUCTURING PLAN  SHOULD BE SEEN AS TEMPLATE FOR REST OF EURO ZONE’. The European Banking shares of Italian and Spanish banks went into free fall with the below chart showing a great correlation to the single currency.

In other news BoJ Governor Kuroda testified in front of parliament reassuring the JPY bears reiterating comments that he is determined to reach the inflation target using whatever means possible. There were vague rumours in the Chinese market that the PBoC may hike rates soon to offset the speculative property prices and inflation. The data highlights today are US new home sales and consumer confidence from across the pond.


EUR/USD

Supports 1.2845-1.2770-1.2660 | Resistance 1.2885-1.2930-1.2960


USD/JPY

Supports 93.85-93.10-92.80 | Resistance 94.70-95.00-95.25


GBP/USD

Supports 1.5165-1.5100-1.5025 | Resistance 1.5225-1.5280-1.5350

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