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Forex - Dollar mixed on news of tentative Cyprus deal

Published 03/24/2013, 09:28 PM
Updated 03/24/2013, 09:29 PM
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Investing.com - The U.S. dollar is trading mixed against its major rivals during Monday’s Asian session after news reports broke that Cyprus has reached a deal to tap bailout assistance from the European Union and International Monetary Fund, though the deal has been characterized as tentative.

In Asian trading Monday, EUR/USD is higher by 0.34% at 1.3036. as various media agencies are now reporting that a deal has been reached to help Cyprus avert bankruptcy and a possible departure from the euro zone, but those reports cite unidentified sources. It is also believed that Germany, the euro zone’s largest economy, has demanded that Cyprus reduce the size of its ailing banking system.

It is also believed 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.

USD/JPY rose 0.28% to 94.76. The pair could be in focus this week as the U.S. is expected to release data points ranging from durable goods orders to consumer confidence as well as the final reading of fourth-quarter GDP. On Thursday, Japan publishes retail sales data and on Friday the country will reveal data on inflation, household spending and industrial production.

GBP/USD added 0.11% to 1.5248. Last week, Fitch Ratings said it would make a decision on whether to downgrade the U.K. before the end of April, citing the weak outlook for economic growth and high government debt levels.

USD/CHF is lower by 0.08% at 0.9397 while USD/CAD fell 0.05% to 1.0224 as oil prices popped on news of the Cyprus deal.

AUD/USD is flat at 1.0447, but the pair could see increased volatility in the coming days with Reserve Bank of Australia Governor Glenn Stevens slated to speak in Sydney tomorrow and RBA’s financial stability review due out on Wednesday.

NZD/USD is lower by 0.07% at 0.8349 while the U.S. Dollar Index is down 0.21% at 82.34.


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