FXEmpire | March 18 2013 12:02 EDT
The EUR/JPY declined by 2.46 to trade at 122.17 as the euro tumbled this morning after Cypriot leaders have postponed a debate and vote on the bailout offer by the EU. The EU debt crisis remains in center stage this morning after reaching an agreement with the Cypriot government on Saturday has upset markets. The bailout is employing new terms never seen before by the EU ministers. The demand is for a levy on all bank deposits. Accounts under 100,000 will be taxed 6.75% while larger accounts will be taxed at 9.9%. Global markets as well as consumers across the EU are upset. Many are warning of a run on banks over days as other smaller countries that might be looking for bailouts will see their depositors pulling money from the banks.
Market sentiment made an about turn with equities and riskier currencies tumbling as the US dollar and the JPY climb. The euro has tumbled 170 points in the Asian session. The terms of Cypruss bailout are negative for depositors across Europe, and may hurt bank ratings region-wide, Moodys Investors Service said in its Credit Outlook report today.
The euro may drop toward its November low of $1.2662 if it falls below so-called support near the $1.2887 level, said Australia & New Zealand Banking Group Ltd., citing chart patterns.
The euro had rallied after approaching $1.2885, the 38.2 percent Fibonacci retracement level of its move from $1.4247 on Oct. 27, 2011, to $1.2043 on July 24. Fibonacci analysis is based on the theory that prices rise or fall by certain percentages after reaching a high or low.
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Economic Data March 18, 2013 actual v. forecast
Rightmove House Price Index
New Motor Vehicle Sales (MoM)
China House Prices (MoM)
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
Government Bond Auction
Date Time Country
Mar 19 09:30 Spain
Mar 20 10:10 Sweden
Mar 20 10:30 Germany
Mar 20 10:30 Portugal
Mar 21 09:30 Spain
Mar 21 09:50 France
Mar 21 10:30 UK
Mar 21 10:50 France
Mar 21 16:30 Italy
Mar 21 16:00 US
Mar 21 18:00 US
Mar 22 16:30 Italy
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Originally posted here