Forex trading headlines from the US session:
- Dijsselbloem says Cyprus a template for eurozone bank restructurings
- Dijsselbloem says “just kidding” Cyprus is unique
- German council of economic advisers cuts growth forecast to 0.3% from 0.8%
- Rumors of an Italian downgrade
- Fed’s Dudley says mon pol must be kept ‘very accommodative’
- Dallas Fed March manufacturing index +7.4 vs +3.7 exp
- Cyprus to meet tonight on capital controls, some banks to re-open tomorrow
- S&P 500 down 0.3% to 1552
- JPY leads, EUR lags
EUR/USD is back below the 200-day moving average on the combination of the downgrade rumor and comments about taxing deposits above 100K euro in other sovereign/bank restructurings. Dijsselbloem tried to put the genie back in the bottle but it was futile and the euro looks likely to close below the 200-dma (1.2881). Last at 1.2857.
Cable followed the euro down initially, touching 1.5143 but it rebounded as EUR/GBP broke to a six-week low. Last at 1.5177.
USD/JPY hit stops below 94.25 but was buffered for a time at 94.00 big stops were tripped as that level gave out and the pair fell as low as 93.53 but has since rebounded to 94.17.
