Forex: Monday’s review

The euro fell to a four-month low against the dollar after European leaders said that the salvation of Cyprus can become a precedent, encouraging doubts about the safety of other big mill in the eurozone.

The single currency fell against all 16 most-traded currencies, after the Dutch Minister of Finance and Chairman of the Eurogroup Jeroen Deysselblum said it was important to avoid risks in the public sector. Furthermore, he added that the agreement on Cyprus could lead to the restructuring of the banking sector. Meanwhile, he believes that after Cyprus Eurozone bank expects hard mode.

We also add that the comments of the Finance Committee chairman Nicolas Papadopoulos of Cyprus about the likelihood of the country out of the euro zone, along with rumors of a downgrade of Italy for some time to be in the focus of the players.

The yen rose sharply against the dollar, while restoring previously incurred losses, as investors used the currency as a safe-haven. Recall that Kuroda last week in his inaugural speech as head of the central bank of Japan said that it would do everything possible to achieve an inflation rate of 2%.

The pound rose to a six-week high against the euro on fears that political disputes for 10 billion euros ($ 13 billion) for Cyprus, undermined confidence in the financial system of Europe.

The British pound fell against the U.S. dollar on the background data for the approved applications for mortgage BBA, the number of which was reduced to 30.5 million in February vs. 33.6 thousand and 32 thousand in January. Companies and homeowners the UK in February to pay their debts, and the amount of borrowing from large banks remained fairly low. Also contributed to the drop in currency report from Hometrack, which showed that house prices in England and Wales rose in March by 0.3 percent compared with the previous month, while showing the biggest increase since March 2010. At the same time, it became known that on an annual basis, prices remained at the same level. In addition, the data showed that in London, the average house prices have increased in monthly terms by 0.7 per cent, demonstrating the highest growth in the last 3 years. We add that the decline in prices was registered only in the north-eastern area.