Monday saw the common currency of the European Union drop to its lowest value in 14 months against the U.S. dollar in the aftermath of a weekend bailout and its conditions issued to Cyprus, Bloomberg reports.
Euro zone finance ministers persuaded Cyrus president Nicols Anastasides to agree to bank deposit charges to raise 5.8 billion euros as part of a bailout agreement. The euro also fell to its lowest value in two weeks against the monetary unit of Japan as concerns mounted about the regional economy.
"There's concerns about the dangerous precedent that this sets in terms of other so-called depositors guarantees," Asia-Pacific research head Annette Beacher with TD Securities Inc. in Singapore told the news source on Monday. "It's the de-facto break-up of the euro in the fact that having money in a Cyprus bank isn't worth as much as having money in any other bank."
As it bounces back from the sovereign debt crisis, the euro zone had enjoyed a relative calm since September when the European Central Bank committed to support member countries carrying debt burdens.
Regional finance ministers are set to convene for a Monday conference call to discuss the aftermath of the bailout, according to Reuters.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.