01, April 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The U.S. dollar fell on Thursday. Euro, on the contrary, strengthened. The fall happened after the Cypriot banks started to work again after two weeks of inactivity.

The Italian political crisis and economic news attracted the attention of traders. Dollar index ICE, which reflects the price of the U.S. currency against six major pairs, fell to 82.945 against the index among 83.244 at the end of the North American session.

The pair EUR/USD was trading at 1.2825 against 1.2772 late Friday in the North American session. Euro lost nearly 2% against the dollar in March.

Euro is on track to decline by 2.7% in the 1st quarter.

Since Thursday the Bank of Cyprus are open again. The first news did not give cause for panic, but there are limits on cash transactions and withdrawals, according to the rules for the control of capital movements, which were introduced in the country.

Agency Bloomberg, in the face of a currency strategist at Morgan Stanley, Hans-Günter Redeker expects the euro will fall against the U.S. dollar in the next 2.5 years. According to him, the pair is trading at 1.25 at the end of 2013, then it will fall to 1.19 by the end of 2014.

There are still concerns about the political deadlock in Italy. Pier Luigi Bersani, leader of the Democratic Party, on Wednesday, openly declared that only a "madman" wants to rule the country in the circumstances.