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Forex - Euro recovers vs. dollar as Cyprus banks reopen

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Investing.com - The euro recovered from four-month lows to hit session highs against the dollar on Thursday as banks reopened in Cyprus, following a two-week closure.

EUR/USD hit 1.2839 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2830, gaining 0.40%.

The pair was likely to find support at 1.2755, the session low and a four-month low and resistance at 1.2888, Tuesday's high.

The euro regained ground against the dollar amid calm as banks in Cyprus reopened for the first time in almost two weeks with strict capital controls in place.

Cypriot banks had been closed since March 16 amid fears of a bank run while bailout talks were under way.

But investors remained wary that the bailout deal for Cyprus could set a precedent for future bailouts in larger euro zone states, with big bank depositors and senior bond holders forced to suffer losses.

Elsewhere, Italy saw borrowing costs rise amid growing doubts over whether a stable coalition government can be formed amid an ongoing political deadlock.

The euro pushed higher against the pound and the yen, with EUR/GBP edging up 0.08% to 0.8454 and EUR/JPY easing up 0.07% to 120.78.

In the U.S., official data showed that gross domestic product expanded at an annual rate of 0.4% in the three months to December, lower than forecasts for a 0.5% expansion.

The growth rate was the slowest since the first quarter of 2011, but was higher than initial estimates for growth of 0.1%.

A separate report showed that the number of people who filed for initial unemployment assistance in the U.S. rose by 16,000 to a seasonally adjusted 357,000 last week, compared to expectations for an increase to 340,000.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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