Investing.com - The euro jumped against the dollar during Monday’s Asian session after European Union finance ministers approved a plan that will help Cyprus avert bankruptcy and likely remain part of the euro zone.
In Asian trading Monday, EUR/USD climbed 0.40% to 1.3044. The pair was likely to find support at 1.2864, Wednesday’s low, and resistance at 1.3048, Monday’s high.
Earlier today, Cyprus Parliament Speaker Yiannakis Omirou told members of the media that a deal has been reached and that the accord will now be sent to the other euro zone nations to be ratified. Heading into the talks, it was believed that Germany was pushing Cyprus to shrink its banking system. Germany is the region’s largest economy.
With a deal in place, Cyprus should be able to meet a deadline imposed by the European Central Bank, which had threatened to withdraw funding, a move that could have hastened Cyprus’ bankruptcy and euro zone departure.
Over the weekend, it was reported that Cypriot President Nicos Anastasiades has approached EU leaders with a new plan that would tax deposits at the country’s banks of over EUR100,000, but not deposits below that amount. It is believed the deal in place does not tax deposits below EUR100,000.
Elsewhere, on Tuesday, Germany will produce official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
On Wednesday, the euro zone will release preliminary data on consumer inflation, which accounts for a majority of overall inflation while Italy holds a 10-year bond auction.
Meanwhile, EUR/JPY surged 0.78% to 123.72 while EUR/GBP rose 0.23% to 0.8551. EUR/AUD is higher by 0.29% at 1.2473.
In Asian trading Monday, EUR/USD climbed 0.40% to 1.3044. The pair was likely to find support at 1.2864, Wednesday’s low, and resistance at 1.3048, Monday’s high.
Earlier today, Cyprus Parliament Speaker Yiannakis Omirou told members of the media that a deal has been reached and that the accord will now be sent to the other euro zone nations to be ratified. Heading into the talks, it was believed that Germany was pushing Cyprus to shrink its banking system. Germany is the region’s largest economy.
With a deal in place, Cyprus should be able to meet a deadline imposed by the European Central Bank, which had threatened to withdraw funding, a move that could have hastened Cyprus’ bankruptcy and euro zone departure.
Over the weekend, it was reported that Cypriot President Nicos Anastasiades has approached EU leaders with a new plan that would tax deposits at the country’s banks of over EUR100,000, but not deposits below that amount. It is believed the deal in place does not tax deposits below EUR100,000.
Elsewhere, on Tuesday, Germany will produce official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
On Wednesday, the euro zone will release preliminary data on consumer inflation, which accounts for a majority of overall inflation while Italy holds a 10-year bond auction.
Meanwhile, EUR/JPY surged 0.78% to 123.72 while EUR/GBP rose 0.23% to 0.8551. EUR/AUD is higher by 0.29% at 1.2473.