05, April 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The crisis in Cyprus, dominated two weeks in the news and put pressure on the euro. The crisis is far from over. While banks in the island finally opened, confidence in the euro area has been lost, which is also affected by the political crisis in Italy and signs of weakness in Germany. However, despite the slight disappointment, the data still predict a positive trend.

While the banks are working in Cyprus, much damage has been done to undermine confidence in the banks of the euro area, especially after the late head of the Eurogroup statement Dijsselbloem. The crisis could spread to Slovenia, even if there is a little in common between the two countries.

In addition, large countries are struggling: Italy does not get closer to the government, and probably headed for early elections. Economics in France and Germany are struggling with the crisis and unemployment remains high in Spain, Greece and many other countries.

In addition, U.S. figures have deteriorated, but the economy continues to grow. Upcoming Non-Farm Payrolls should give confidence to a sustainable path of U.S. recovery.