Introducing Broker Forex: Cyprus crisis is affecting euro quotes

Introducing Broker Forex:  The euro was pinned near four-month lows against the U.S. dollar in Asia on Wednesday.

This is after Cyprus' rejection of bailout terms seemed to threaten default or even expulsion from the euro zone.

The general assumption in the markets is that the European Union, as so often before, will hash out a last minute deal that keeps Cyprus in the single currency. 

"The wider implications for the Eurozone were Cyprus to leave are really quite far reaching and it would make sense to see if some form of compromise deal can be reached," said Brian Martin, a senior strategist for ANZ in London. 

"However, we cannot read this outcome as anything but negative for the euro," he added. "We recommend staying short the euro vs JPY, CHF, GBP and USD. Peripheral bond spreads should widen further as fears over contagion grow, particularly around Greece." Introducing broker Forex might trade against euro in order to prevent losses.
The euro was indeed looking unloved at $1.2862, having been as low as $1.2843 overnight after breaking key support around $1.2870, its 200-day moving average.
Further losses were prevented only after the European Central Bank said it was committed to providing liquidity to Cypriot banks within certain limits.
All this uncertainty kept the yen supported in its traditional role as a safe haven. The euro was off at 122.27 yen; while the dollar was a shade softer at 95.07.
Yet, the currency market will also be wary of any comments from Haruhiko Kuroda, who will become governor of the Bank of Japan. Expectations are high that Kuroda will quickly embark on a much more aggressive monetary policy to fight deflation, perhaps even before the next scheduled policy meeting in early April.
The euro even fell against the ailing pound, hitting a five-week low near 85 pence. It was last at 85.21, with the most recent long-term trough in February at 84.44.
Still, the sterling itself may come under pressure later in the day as the British government delivers its budget. There is much talk that Chancellor George Osborne could soften the Bank of England's inflation-fighting remit in order to spur growth. As euro and sterling are still weak compared to the US dollar, an Introducing Broker Forex may consider the dollar as a good investment.
The prospect of yet more asset buying by the Bank of England could see sterling resume its decline, particularly against the U.S. and Australian dollars.
The dollar index, which measures the greenback against a basket of currencies, was up 0.4 percent at 83.026, not far from a seven-month peak of 83.166.
Investors should also remember that a two-day U.S. Federal Reserve policy meeting ends on Wednesday, with an update to economic forecasts and the first news conference of the year from Chairman Ben Bernanke.
As ever, the market will be hyper sensitive to any hint on when the Fed might consider slowing its asset buying plans. For an Introducing Broker Forex that trades in spot markers, the fluctuation represents a good opportunity to make some profit.