EURUSD rose on Friday and closed at 1.2988. Cyprus agreed with Greece on a takeover of the Greek units of Cypriot banks, easing fears of the country’s exit from the Eurozone. During the Asian session Cyprus reached bailout agreement with the European Central Bank, the European Commission and the International Monetary Fund. The Head of the European Stability Mechanism Klaus Regling, indicated Cyprus would receive the first tranche of a 10.0 billion Euro in early May 2013 after all formalities are completed in April 2013. Deposits over 100,000 Euro in Bank of Cyprus and the Laiki bank which are not guaranteed under EU law, will be frozen and used to resolve Laiki’s debts and recapitalise Bank of Cyprus through a deposit/equity conversion.The raid on uninsured Laiki depositors is expected to raise 4.2 billion euros, Eurogroup chairman Jeroen Dijssebloem said. Investors are now awaiting the speech of the Chairman of the United States Federal Reserve due later today. Support for the EURUSD is seen at 1.2972 and resistance is seen at 1.3047. The HotForex Traders Board shows that 51 percent of the traders are short on the EURUSD.
GBPUSD
The Cable rose on Friday and closed at 1.5227. The ratings agency Fitch placed the AAA credit rating of the United Kingdom on “Negative”watch. The agency indicated that the persistently weak performance of UK growth has increased uncertainty around the nation’s potential output and longer-term trend rate of growth with significant implications for public finances. Trading trends on the pair today are expected to be determined by the BBA Mortgage Approvals data due from the United Kingdom and the speech of the Chairman of the United States Federal Reserve Ben Bernanke. Support for the GBPUSD is seen at 1.5149 and resistance is seen at 1.5153. The HotForex Traders Board shows that 54 percent of the traders are short on the GBPUSD.
Cyprus avoids bankruptcy after securing a bailout deal. FED Chairman Ben Bernanke speaks today.
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