Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - EUR/JPY falls on Cyprus bank tax proposal

Published 03/18/2013, 02:45 PM
Updated 03/18/2013, 02:45 PM
Investing.com - The euro slumped against the yen on Monday after the European Union asked Cyprus to slap a tax on bank deposits in order to tap a broader bailout package.

Uncertainty as to how the tax will apply to smaller depositors supported the single currency.

In U.S. trading on Monday, EUR/JPY was down 0.71% at 123.72, up from a low of 121.60 and off a high of 123.95.

The pair sought to test support at 121.60, the earlier low, and resistance at 125.79, Friday's high.

The one-time tax taking aim at Cypriot bank deposit holders forms part of a EUR10 billion bailout deal, and the proposal sent the euro falling against most other currencies due to fears unease may grow since smaller depositors may be affected.

The move also spooked investors on sentiment that an era of eurozone bailouts that avoided touching bank deposits may now be ending.

The euro did erase earlier losses and found some support after the Cypriot parliament delayed voting on the measure and find ways to possibly soften the blow on smaller depositors.

Russia was quick to criticize the move in Cyprus, home to large amounts of Russian deposits.

The events in Cyprus served as the pair's chief steering current on Monday.

Elsewhere, the eurozone reported that its trade surplus narrowed to EUR9 billion in January from EUR10.3 billion in December.

Analysts were expecting the surplus to widen to EUR10.9 billion.

The euro, meanwhile, was down against the pound and down against the Canadian dollar, with EUR/GBP trading down 0.85% at 0.8680 and EUR/CAD trading down 0.75% at 1.3232.

On Tuesday, markets will continue to track events in Cyprus.

Elsewhere, the ZEW Institute will release its index of German economic sentiment.








Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.