Online forex signals from the Cyprus bailout

On March 18, 2013 | By | In News, Political, Trading Signals

Bailout of Cyprus by the EurozoneA weakened Euro has highlighted much of the forex trading news the past few days. This slide has been associated with a few primary factors. The most obvious and important event is the recent bailout of Cyprus which still serves to underpin the relative weakness in some regional European economies.

Some online forex trading specialists are concerned not only about the sharp austerity measures as well as the mandatory savings account taxes that have been put in place, but also are watching for nay possible contagion to the already weak Mediterranean nations. This deteriorating economic condition may very well lead to the Euro losing further ground against other benchmark currencies in the week ahead.

Furthermore, if we combine the Cyprus situation with an undershooting of the ECB’s medium-term target forecast of 2% growth and the observation at the credit flow within the European Union has begun to slow once again, these signals may also hint at a continued downturn for the Euro.

Online forex traders will take great interest in the developing situation in Cyprus as well as the March PMI readings which will be revealed later this week. This being said and with the possibility of recovery still on the horizon, many investors are still taking a neutral to a slightly-bearish stance.

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