Cyprus meeting! More flexibility on levy with Tuesday vote uncertain

As Reuters informed, Cyprus has been granted more flexibility on the bank levy according to the Greek finance ministry. Cyprus should safeguard protection of depositors below €100K, but in the same line, the island will still have to raise €5.8 billion in bank levies.

As ECB Governing Council member Jörg Asmussen told Reuters on Monday, the deposit levy is a one-time measure. The eurozone ministers favors no levy on deposits up to €100K.

Initially, the vote was scheduled to take place on Tuesday, however, amid the ongoing drama, the Cypriot President Nicos Anastasiades canceled the vote, with the replacing date still to be confirmed. At this moment, the fluid situation may lead to re-schedule the vote for today, as some reports suggest, or delays may extend until Thursday, according to other headlines.

Besides, the Central bank of Cyprus has decided to extend the current bank holiday until Thursday.

Ashraf Laidi, CitiFX analyst, commented in a recent report that the next event risk for EURUSD will be the announcement from Cyprus. "Also note the ECB said will provide the necessary liquidity if the Parliament approves the depositor-levy, so look out for a potential spike in the EURUSD after the Parliament’s announcement especially if there is a noticeable reduction in the burden on smaller depositors (below €20,000)."

The EUR/SUD has reacted up from 1.2925 to trade above the 1.2950 on the closing bell.

Contact Us:

Asad Rasheed
Direct:04-3841906
Email:asad@cfb.ae
Email:info@cfb.ae

For more information please visit our website:  www.cfb.aeHere are some useful links that you can follow:

Here is a CFB blog that gives useful daily trade advice... http://century-financial-brokers-uae.blogspot.ae/

You can also follow CFB on facebook (useful advice on posts regularly)

Here is another blog that provides regular news and information and is very useful to stay updated 
on the markets...  http://cfbllc.blogspot.ae/