Over the weekend, euro-zone finance ministers reached an agreement on implementing a bailout plan for Cypriot banks. The euro zone will inject some €10 billion and depositors will be forced to cough up an additional €5.8 billion in the form of taxes on funds deposited in the country’s banks. However, markets remain unconvinced of the effectiveness of this solution, with the EUR/USD pairing at its lowest level this year.
- On the economic front, we are awaiting data on Foreign Investments in Canadian Securities for January. In January, we learned that investors had withdrawn close to $2 billion in investments from Canada the previous month. Based on the recent faltering loonie, it would not be surprising if January’s figures indicate that international investors have withdrawn more funds from Canada.
- Lastly, the Reserve Bank of Australia will cap off the day at 8:30 p.m. when it releases minutes of its most recent meeting to determine the country’s key rate. Have a great Monday! Xavier Villemaire
- Range of the day: 1.0200 - 1.0280 Range of the next five days: 1.0075 - 1.0400
