Forex Technical & Market Analysis FXCC Mar 29 2013

[alayoua]

[b]Forex Technical & Market Analysis FXCC Mar 29 2013

The Cyprus moment

The euro zone could be slipping into a new period of turbulence even before it has had a chance to return to growth. And yet the improvement previously discussed in these pages has been confirmed: borrowing conditions for governments have improved and some, such as Ireland, have made a successful return to the markets. Ratings on sovereign debt have stabilised. One sign of an easing of financial tensions in the zone is that the internal balances in the Eurosystem, as reflected in Target 2 balances, have narrowed to a degree. These are encouraging but fragile signs that could be compromised by the difficulties in managing the Cypriot crisis or by the political uncertainty in Italy. Is there a new European crisis brewing in Cyprus? The country