Optimistic Euro Deal Reached Cyprus

Learn Forex News : The euro turned traded higher amid optimism that the Cyprus government will be able to reach a deal to avert a financial crisis before the deadline on Monday. The European Union has given Cyprus deadline until Monday to improve the funding of € 5.8 billion, which is a requirement disbursement of € 10 billion international bailout package. Without an agreement, the ECB will also stop liquidity support to the banking Cyprus.

"Some combination of a tax on bank deposits is lower, an additional loan from Russia and Cyprus government's fiscal commitment remains the most likely option," said Steven Englander, head of G10 strategy at CitiFX in New York. "But it may not be a resolution giving strong impetus to the Euro or permanent."