Tag Archives: Dijsselbloem

EUR-USD Chart

Russia, Cyprus, Syria

EUR-USD ChartThe biggest looser (after Cyprus) today has been the EUR.USD. This was the dream-fade-trade for Forex traders. The news flow from early Monday morning when the agreement was reached was handed easily to “Europe”. All is well, Cyprus is fixed. Then as often happens one of the members didn’t play by the script. The Eurogroup head and Dutch Finance Minister, Jeroen Dijsselbloem, says Cyprus is a Template for restructuring… That sent the market into a downward directional tizzy which it has yet to recover from. He’s since recanted, clumsily.

The bailout-bailin looks like this: Cyprus’s 2nd largest bank will be shut down and those insured depositors of <100k Euros will be moved to the Bank of Cyprus. Anyone with >100k Euros is looking at a nice big loss. Cyprus will have to find 4.2 billion euros from the uninsured.

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