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Forex: EUR/USD settling around 1.2950

FXstreet.com (Barcelona) - The EUR/USD was able to a retrace many of the pips lost as the week started, bouncing from 1.2882 already to 1.2976, but still 100 pips below the opening price of 1.3076. The market is currently settled around 1.2950 as investors digest more news from Cyprus.

The Parliament vote on the bailout measures was postponed to tomorrow or Friday as the terms regarding taxes on deposits below €100k are renegotiated. “There has been talk of breaking the tax into 3-4 tiers, that could see very smaller depositors avoid any next, a tax around 3.5% for those less than €100k, and then higher rates on those above €100k and a further increase in the rate for those above €500k in deposits”, said TD Securities analyst Richard Kelly.
Italy is also attracting attention as forming a coalition in the government becomes increasingly unlikely as M5S and PdL are still far from involved.

“EUR/USD got hammered by Cyprus bailout and today's trading began with a huge gap from Friday's close at 1.3072”, wrote Deltastock.com analyst Stoyan Mihaylov. “The intraday bias is positive, in an attempt to fill the gap, so my outlook is bullish, for 1.3040, en route to 1.3100”, he continued, adding support at 1.2920.

European markets down on Cyprus

The German DAX 40 (-1.10%), the French CAC 40 (-1.10%), the Italian FTSE MIB (-2.15%) and the Spanish IBEX 35 (-1.96%) are down on Monday, the same way the other European equity indexes are, as Cyprus bailout news reached investors' ears this weekend.
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It’s only Cyprus!!

Market sentiment has been hit after the Troika and the Cypriot government came to an agreement over the weekend. The bailout package worth €10,000 billion certainly has not come for free, with a threatened levy....
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