On Friday, the news flow from Europe and the US was in balance. First, the euro lost as headlines on Cyprus sparked nervousness on global markets. Later in the session, the dollar declined on yet another batch of disappointing US eco data.
Intraday, EUR/USD still changed hands north of the 1.31 handle in Asia and early in Europe. However, the recent rebound had become a bit exhausted and with sentiment on risk turning negative, the easiest way for EUR/USD was south. There was little high profile hard news. Nevertheless, the headlines from the meeting of the EMU Finance Minsters clearly weighed on sentiment. Cyprus had to look for additional funding on its own to make the EMU rescue work. This was no surprise.
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KBC