EUR/USD (a 4-hour chart)
To receive the assistance Cyprus pledged to tax deposits over $ 100 000 in the country's two largest banks - Popular Bank of Cyprus/Laiki Bank/ and Bank of Cyprus. Cyprus has also promised to restructure these banks.
The fact that Italy has not formed a new government also put pressures the euro.
There are several important releases in Europe this week still only positive news can strengthen investors’ positive intentions.
This is particularly important for Italy, where consumer confidence may reflect the additional uncertainty after the February elections.
Business confidence (on Thursday), is expected to fall (to 88.0 from 88.5 prev.). Given the further deterioration in the French PMI last week, consumer confidence (Tuesday, is expected - 86, no change) can also have more weight than usual.
GDP for Q4. (Wednesday) is expected unchanged at -0.3% q / q. Projections in Germany also suggest some moderation in growth prospects, which should be reflected in the February retail sales on Thursday (expected -0.5% m/m). Together, we can see some room for downward pressure on the euro, while the events in Cyprus, it is likely to be the main driver.