Currency update
Currency markets had no clear trend during a volatile, session, as the Euro traded close to flat and the sterling maintained its slide. The EUR/USD was lower at 1.3401 and the dollar was dreary next to the yen at 94.36 whilst the pound dropped against the dollar by 0.47 percent to 1.5585. On the whole, the Dollar Index increased 0.15 percent on the sterling and the Loonie.
While the Eurozone persists to continue its deliberations over European Central Bank involvement, the benefits are visible in Japan, where the yen’s strength weakened thanks to the Japanese government’s decision to intervene. As a result, Japanese consumer confidence figure is currently as strong as it has been for some time.
Sparkling in the background for the EUR/USD pair are uncertainties regarding Cyprus and the expected call for for a bailout. Talks over would-be debt reorganization have become timely again and even though the size of funds needed are not similar to Greece or possibly Spain, the pessimistic sentiment of yet another Eurozone member state failing miserably is undoubtedly a huge headache for Europe’s top dogs.