Forex Flash: Cyprus would cap euro upside ahead in the week – Danske Bank

FXstreet.com (Barcelona) - The single currency remains trapped around 1.2950 on Monday, as market participants continue to scrutinize the news coming from Cyprus in order to get a clearer panorama of the situation. “The key question this morning, however, is whether Cyprus has the potential to derail the risk-on market and trigger a bigger euro depreciation”, commented K.Kirkegaard, Senior Analyst at Danske Bank.

“Downside risks remain, though, until important questions are answered: (i) will Parliament pass the deposit hair-cut, (ii) how will depositors react in other European countries and not least Greece, and (iii) will investors be convinced that Cyprus is a unique case”, concluded the expert.