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22 Mar 2013
Forex Flash: Market reaction to Cyprus impressive - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that the way that markets have reacted to the Cypriot crisis is somewhat impressive.
They feel that this is especially so when considering that this is taking place while political uncertainty continue to hang over Italy, the third largest economy in the Euro area. They write, “The euro is off 1.1% on the week. Central European currencies--Poland, Czech and Hungary – all lost round 1.0% against the euro. The Swedish krona and Norwegian krone underperformed. The strongest currency this week has been the Japanese yen, which has appreciated by almost 1% against the greenback. Separately, we note that sterling has also performed well this week, gaining a little more than 0.5%.”
They feel that this is especially so when considering that this is taking place while political uncertainty continue to hang over Italy, the third largest economy in the Euro area. They write, “The euro is off 1.1% on the week. Central European currencies--Poland, Czech and Hungary – all lost round 1.0% against the euro. The Swedish krona and Norwegian krone underperformed. The strongest currency this week has been the Japanese yen, which has appreciated by almost 1% against the greenback. Separately, we note that sterling has also performed well this week, gaining a little more than 0.5%.”