EUR/USD $1.2850, $1.2900, $1.2950, $1.2960, $1.3000

USD/JPY Y94.75, Y95.00, Y95.50, Y95.60, Y96.00

EUR/JPY Y123.00

GBP/USD $1.5100, $1.5200, $1.5300

EUR/GBP stg0.8550

GBP/CHF Chf1.4350

USD/CHF Chf0.9500

AUD/USD $1.0250, $1.0265, $1.0325, $1.0390, $1.0400, $1.0420

AUD/NZD NZ$1.2500

Data

01:45 Australia RBA Assist Gov Edey Speaks March

08:00 Eurozone Cyprus Parliament votes on the banking/fund bills

09:00 Germany IFO - Business Climate March 107.4 107.8 106.7

09:00 Germany IFO - Current Assessment March 110.2 110.4 109.9

09:00 Germany IFO - Expectations March 104.6 105.0 103.6

The euro rose sharply against the dollar, as investors continue to eagerly catch news from Cyprus. Government spokesman said that the next few hours will be crucial for the country, as parliament prepares to vote on the membership of Cyprus in the eurozone. Meanwhile, the ECB announced that on March 27 22 banks repay loans, in the program LTRO. Estimated volume of maturity was € 1.936 billion in the economic calendar today is empty, and therefore the main driver of currency movements and volatility will be the development of the situation around Cyprus.

We also add that the European growth will not prevent even the data showed that the index of business sentiment in Germany, which is the largest economy in the euro zone fell unexpectedly in March, after a sharp rise in February. Businesses are less optimistic about their export.

Business climate index fell in March for the first time in five months, reaching 106.7 points against 107.4 points in February. The average forecast implied increase in the index to the level of 107.8 points. Ifo index decline followed the same unexpected (in terms of average forecasts) decline of business activity from Markit. Weak data on business activity index call into question the ability of the German economy to quickly recover after weak Q4. Ifo president said that the German economy is in difficult circumstances. He also noted the reduction of positive expectations about the prospects for export manufacturers.

The yen rebounded with minimum values ​​session against the dollar will recover in most of their losses, but investors are still relentlessly catch the news on the Cypriot issue. Although recent media reports that Russia has refused to fund the Cyprus, the Russian Prime Minister Medvedev said the door was slammed and the country may agree to assist. EU representative Barroso said that the position of the Eurogroup in the Cyprus issue is unanimous, and that the state is suffering from enlarged banking system, but the solution to this problem can be found.

EUR / USD: during the European session, the pair rose to $ 1.2965

GBP / USD: during the European session, the pair rose to $ 1.5212

USD / JPY: during the European session the pair fell to Y94.19, but later rose to Y94.85

At 14:00 GMT Belgium release index business sentiment for March.

EUR/USD

Offers $1.3040/50, $1.2995-005, $1.2970/80, $1.2945/55

Bids $1.2880/75, $1.2875/70, $1.2840, $1.2825/20

GBP/USD

Offers $1.5300, $1.5280, $1.5245/60, $1.5220/30

Bids $1.5165/60, $1.5125/20, $1.5100/090, $1.5010/00, $1.4985/80

AUD/USD

Offers $1.0550, $1.0520/30, $1.0490/00, $1.0455/60

Bids $1.0410/00, $1.0385/80, $1.0365/60, $1.0355/50, $1.0340/30

USD/JPY

Offers Y95.95/00, Y95.75/80, Y95.50, Y95.15/20, Y95.00

Bids Y94.00, Y93.50

EUR/GBP

Offers stg0.8695/700, stg0.8680/85, stg0.8650, stg0.8615/20, stg0.8570/80, stg0.8530

Bids stg0.8480, stg0.8450/40, stg0.8410/00

EUR/JPY

Offers Y123.45/50, Y123.00, Y122.65/70, Y122.50

Bids Y121.20, Y121.00, Y120.50

EUR/USD $1.2850, $1.2900, $1.2950, $1.2960, $1.3000

USD/JPY Y94.75, Y95.00, Y95.50, Y95.60, Y96.00

EUR/JPY Y123.00

GBP/USD $1.5100, $1.5200, $1.5300

EUR/GBP stg0.8550

GBP/CHF Chf1.4350

USD/CHF Chf0.9500

AUD/USD $1.0250, $1.0265, $1.0325, $1.0390, $1.0400, $1.0420

AUD/NZD NZ$1.2500

The euro trades near the lowest level in four months after the European Central Bank gave Cyprus until the start of next week to agree to a bailout package or lose emergency funding.

The ECB said in an e-mailed statement yesterday it will cut Cypriot banks off from emergency funds after March 25 unless the Mediterranean island agrees on a bailout with the EU and International Monetary Fund. Cypriot lawmakers will begin debate today on new legislation, after rejecting a proposal for an unprecedented levy on bank accounts.

Standard & Poor’s cut its rating on Cyprus by one level to CCC from CCC+, citing “acute problems” in the island nation’s banking industry. S&P said it has a negative outlook, pointing to the possibility of another cut.

The yen extended gains from yesterday when Haruhiko Kuroda failed to outline at his inaugural press conference as BOJ governor how he plans to achieve the central bank’s 2 percent inflation target, adopted at the urging of Prime Minister Shinzo Abe.

The new central bank chief “was short on detail, disappointing the market,” David Croy, a Wellington-based researcher at ANZ National Bank Ltd. wrote in a note to clients today. “For the moment yen weakness appears mature.”

EUR / USD: the pair shown high at $1.2920 but fell to session lows later.

GBP / USD: during the Asian session the pair shown moderate growth, approach to the strong resistance at $1.5200/20 area.

USD / JPY: during the Asian session the pair fell to area of yesterday's low Y95.55.

(symbol/close price(00:00 GMT +02:00)/change, %)EUR/USD $1,2894 -0,38%

GBP/USD $1,5169   +0,44%

USD/CHF Chf0,9469 +0,27%

USD/JPY Y95,04 -1,02%

EUR/JPY Y122,52 -1,43%

GBP/JPY Y144,16 -0,57%

AUD/USD $1,0435 +0,56%

NZD/USD $0,8313 +0,58%

USD/CAD C$1,0247 -0,09%

01:45 Australia RBA Assist Gov Edey Speaks March

08:00 Eurozone Cyprus Parliament votes on the banking/fund bills

09:00 Germany IFO - Business Climate March 107.4 107.8

09:00 Germany IFO - Current Assessment March 110.2 110.4

09:00 Germany IFO - Expectations March 104.6 105.0

14:00 Belgium Business Climate March -11.0 -10.3