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ECB imposes bailout deadline on Cyprus

FXstreet.com (Barcelona) - The European Central Bank announced on Thursday that it would cease providing financial support to Cypriot banks next Monday, unless the government in Nicosia reaches an agreement on the rescue program.

According to the official release: “The Governing Council of the European Central Bank decided to maintain the current level of Emergency Liquidity Assistance (ELA) until Monday, 25 March 2013. Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an EU/IMF programme is in place that would ensure the solvency of the concerned banks.”

In case of the Cypriot government’s failure to strike a bailout deal by the appointed date, the country would only be able to receive financial support if the IMF and the Eurozone establish a program guaranteeing the solvency of affected banks.

As Nicosia decided to maintain its banks closed until Tuesday March 26, the Eurogroup president Jeroen Dijsselbloem declared today that the situation in the country is posing a systemic risk for the stability of the Eurozone.

Forex Flash: GBP/USD may extend upside to 1.5340 before longer term drop – Commerzbank

Commerzbank analysts see the scope for 1.5199/1.5223 resistance area (late February and early March highs) if the GBP/USD stays above Wednesday’s 1.5028 low. “The 2013 resistance line at 1.5281 and further up the February 22 high at 1.5321 as well as the breached one year resistance line at 1.5340 may also be reached in the days to come but should then cap”, wrote analyst Karen Jones, expecting then a move back to the 1.5000 region in the weeks to come. “We believe that the longer term down move has further to run and view the current advance as a short term correction only. Longer term we look for losses to 1.4229, the 2010 low”, she added.
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