Forex: EUR/USD back to highs after IFO

FXstreet.com (Barcelona) - After a logical knee-jerk reaction to the vicinity of 1.2890, the shared currency quickly regained the 1.2900 handle after the German IFO disappointed investors in March. The indicator followed the recent lacklustre data from the euro zone, missing expectations in all of its components and falling from February prints. Business Climate fell to 106.7 from 107.4 and Expectations dropped to 103.6 from 104.6

In the meantime, tensions in Cyprus are building up as protesters congregate outside the parliament where a vote on a restructuration of the banking sector is due later.

EUR/USD is now up 0.17% at 1.2918 facing the next resistance at 1.2966 (MA10d) ahead of 1.2979 (high Mar.20) and then 1.3017 (MA21d).
On the downside, a breach of 1.2879 (MA200d) would clear the way to 1.2844 (low Mar.19) en route to 1.2827 (low Nov.22).

Mar 22, 2013

Cyprus vote on bank restructuring delayed; Russia refuses to lend financial support

The Cypriot parliament’s crucial vote on the bank restructuring and investment fund bill, which was supposed to begin at 8GMT today, has been postponed until the afternoon. The legislation, if passed, would allow the country to raise at least a part of the funds (3.5 billion euros out of the remaining 5.8 billion euros) required by the Troika before it approves a bailout program for Cyprus.

Germany: IFO – Business Climate down to 106.7 in March

According to data published on Friday by the CESifo Group, German IFO – Business Climate decreased slightly from 107.4 in February to 106.7 in March. Market consensus pointed to an increase to 107.6.