Forex Flash: Is the ESM still the most efficient mechanism for recapitalization – UBS
Many commentators have called the Eurozone authorities' Cyprus exercise a case study in 'how not to conduct a bailout'. Small wonder then that Eurogroup Chair Dijsselbloom on Monday said the Cyprus bank restructuring plan 'should be a template for the rest of Eurozone'.
The discussion over whether the Cyprus bailout is or not a template for future situations in the Eurozone is causing some volatility in the Euro, also affecting the EUR/JPY. The cross dropped to 120.77 low and quickly jumped to 121.52 during the US session after a EU Parliament official being in favor of pushing large depositors to face bail-ins.