Forex

The Euro deeply fell in regard to the unprecedented tax application on deposits in Cyprus

Asian and European trading sessions:

Euro: The euro deeply fell against the U.S. dollar with gap down of more than 300 points, as investors were scared that the decision of the Cypress government on the one-time write-offs of deposits that saved at the Cypriot banks will exacerbate the debt crisis in Europe. Recently, the aid package of 10 billion Euros was provided by the European Union and the International Monetary Fund the representatives of which were in Cyprus on Saturday in order to grant this aid for saving the island from bankruptcy. However, the rest, the significant part which is required, the amount of nearly 7 billion will have to be covered by a one-time fee from investors of Cypriot banks. The EUR / USD pair dropped to $ 1.2876 during the Asian session, however, grew on the next following to the $ 1.2978 area.

British Pound: The pound, however, was in investors’ favour today. The currency at the beginning of the week was up against the euro by about 130 points due to its reaction to the innovations in the financial assistance program for Cyprus. The impact on the exchange rate and the data were provided by the Agency of Statistics of the European Union, the presented, not seasonally adjusted data of which recorded that in January the imports of the euro area exceeded the amount exports, and the deficit of $ 3.9 billion ($ 5.1 billion) thus was recorded. The GBP / USD pair rose to $ 1.5144 during the European session.


American trading session:

U.S. Dollar: The Index of U.S. dollar grew today sharply to the level of recent highs, the 83.05 area as many investors were transferring their actives towards safe haven assets due to the situation with Cypress.

Euro: In spite of such drastic drop, the single currency was able to grow to $ 1.2995 level, when it became known that the government of Cyprus postponed the parliamentary vote on the conditions for the country's financial aid which was scheduled for today. Also, for the recovery of the euro contributed the results of the auction of Italian and Spanish government bonds that responded to the Cyprus’s decision only with slight increase in yield, which was seen by analysts as a sign of stability of the European dept market.

Gold: The Gold prices jumped over $ 1,600 an ounce level for the first time in more than two weeks because of fears investors' about the debt crisis in the euro zone. The April futures price of gold on COMEX rose to new two weeks high of 1611.40 dollars per ounce today.

Oil: The April futures prices of WTI crude oil firstly fell to 91.75 dollars a barrel along with the intraday losses incurred on stock markets, and then rose to 93.44 dollars a barrel. They grew on the New York Mercantile Exchange offsetting previous losses after European politicians said that they would be flexible in regard to the unprecedented tax application on deposits in Cyprus.