OctaFX | OctaFX Forex Broker
Open trading account

Cyprus meeting: More flexibility on levy with a Tuesday vote as planned

FXstreet.com (San Francisco) - As Reuters informed, Cyprus has been granted more flexibility on the bank levy according to the Greek finance ministry. Cyprus should safeguard protection of depositors below €100K, but in the same line, the island will still have to raise €5.8 billion in bank levies.

As ECB Governing Council member Jörg Asmussen told Reuters on Monday, the deposit levy is a one-time measure. The eurozone ministers favors no levy on deposits up to €100K.

The Tuesday vote on Levy measure will take place on Tuesday as planned, according to the sources. Ashraf Laidi, CitiFX-s analyst, commented in a recent report that the next event risk for EURUSD will be the announcement from Cyprus. "Also note the ECB said will provide the necessary liquidity if the Parliament approves the depositor-levy, so look out for a potential spike in the EURUSD after the Parliament’s announcement especially if there is a noticeable reduction in the burden on smaller depositors (below €20,000)."

The EUR/SUD has reacted up from 1.2925 to trade above the 1.2950 on the closing bell.

Wall Street closes lower on Cyprus concerns

The US stocks market has finished Monday with losses as investors was concerned by the news about Cyprus bailout and levy. Financials, and specially banks, has pressured down the indexes.
Read more Previous

Session recap: Euro attempts to fill gap

After opening with heavy losses and gaps from Friday close, the Euro has been trading in recovery mode throughout the Monday session. The single currency was pressured to the downside by news from Cyprus and its bailout and levy. Investors has been concerned and stocks posted sharply losses.
Read more Next
Start livechat