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Cyprus deposit levy back on the table

FXstreet.com (Barcelona) - The latest news on the Cyprus bailout negotiations suggest that the proposition to tax bank deposits is back on the table. According to Bloomberg the Eurogroup is considering creating a ‘bad’ bank and a ‘good’ bank to which the deposits from the country’s two largest lenders, Laiki and Bank of Cyprus, would be assigned.

The ‘good’ bank would take in insured deposits below 100.000 euros, which would not be taxed. Uninsured deposits exceeding this amount would go to the ‘bad’ bank and remain frozen until assets were sold. These deposits could sustain losses of up to 40%.

Despite the Cyprus tension, financial markets continued trading rather steady on Friday. TD Securities Rates, FX and Commodities Research team comment: “Equities have been modestly under pressure and peripheral Eurozone spreads are generally neutral. In FX land, looming Cyprus event risk is even less apparent, and the majors are mostly in consolidation mode reflecting the minimal developments overnight. “

Forex: EUR/USD eases to 1.2940

The single currency is back to the area of 1.2940/45 on Friday after hitting intraday highs above 1.2960 on stops-triggering and hopes of a final agreement in Cyprus...
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American equity markets rising Friday

The US Stock market experienced a higher opening Friday as the situation in Cyprus remains unsettled and investors look ahead for some matter of resolution. Beginning with the indices and composites, the NASDAQ rose +0.28% as it settles in region of 3231.10, up +8.98 points in these moments. In addition, the S&P 500 is trading in positive territory, operating at 1550.05, ascending +4.25 points or +0.28% at the time of writing. Finally, the Dow Jones has edged lower at the opening, trading in the zone of 14474.02, presently +0.36% after a movement of +52.36 points.
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