The euro fell to a four-month low against the dollar after European leaders said that the salvation of Cyprus can become a precedent, encouraging doubts about the safety of other big mill in the eurozone.

The single currency fell against all 16 most-traded currencies, after the Dutch Minister of Finance and Chairman of the Eurogroup Jeroen Deysselblum said it was important to avoid risks in the public sector. Furthermore, he added that the agreement on Cyprus could lead to the restructuring of the banking sector. Meanwhile, he believes that after Cyprus Eurozone bank expects hard mode.

We also add that the comments of the Finance Committee chairman Nicolas Papadopoulos of Cyprus about the likelihood of the country out of the euro zone, along with rumors of a downgrade of Italy for some time to be in the focus of the players.

The yen rose sharply against the dollar, while restoring previously incurred losses, as investors used the currency as a safe-haven. Recall that Kuroda last week in his inaugural speech as head of the central bank of Japan said that it would do everything possible to achieve an inflation rate of 2%.

The pound rose to a six-week high against the euro on fears that political disputes for 10 billion euros ($ 13 billion) for Cyprus, undermined confidence in the financial system of Europe.

The British pound fell against the U.S. dollar on the background data for the approved applications for mortgage BBA, the number of which was reduced to 30.5 million in February vs. 33.6 thousand and 32 thousand in January. Companies and homeowners the UK in February to pay their debts, and the amount of borrowing from large banks remained fairly low. Also contributed to the drop in currency report from Hometrack, which showed that house prices in England and Wales rose in March by 0.3 percent compared with the previous month, while showing the biggest increase since March 2010. At the same time, it became known that on an annual basis, prices remained at the same level. In addition, the data showed that in London, the average house prices have increased in monthly terms by 0.7 per cent, demonstrating the highest growth in the last 3 years. We add that the decline in prices was registered only in the north-eastern area.

According to Hometrack, in the last two months the demand has jumped 19 percent, while the number of homes for sale has increased by 13 percent. Economists say that, as demand exceeds supply, prices increased significantly in March.

Price of oil futures has grown, after Cyprus at the last minute to an agreement, which will help to prevent the aggravation of the crisis in the eurozone, and raised its forecast of demand for fuel in the troubled region.

Note that in Cyprus lawmakers approve three main points, including bank restructuring Mediterranean island, as part of efforts to secure international assistance to save 10 billion euros, or $ 13 billion. Among the main measures, legislators are reportedly voted to restructure the country's banks, establishing a "national solidarity fund", as well as a plan for implementing capital controls to prevent a bank run. Under the restructuring of banks, lenders problematic countries will be divided into good and bad banks. Country, reportedly is preparing to close its second-largest bank, also Laiki. This plan will include the division of assets Laiki the good and the bad, and the good assets will be merged with the Bank of Cyprus. However, the Parliament did not vote on other key indicators, including a tax on bank deposits. Cyprus to attract 5.8 billion euros over the next three days, which is a prerequisite to obtain a 10 billion euro rescue from the European Union and the International Monetary Fund.

May futures for U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 94.60 dollars per barrel.

May futures price for North Sea petroleum mix of mark Brent rose 21 cents to $ 107.81 a barrel on the London Stock Exchange ICE Futures Europe.

EUR/USD $1.2800, $1.2825, $1.2900, $1.2950, $1.3000

USD/JPY Y94.00, Y94.15, Y95.00, Y95.50, Y95.60

GBP/USD $1.5100, $1.5200, $1.5225

USD/CHF Chf0.9400, Chf0.9450

EUR/CHF Chf1.2200, Chf1.2220, Chf1.2250

AUD/USD $1.0400, $1.0450

09:30 United Kingdom BBA Mortgage Approvals February 32.3 33.6 30.5

The euro erased a gain versus the dollar after touching the highest level in more than a week on concern political wrangling about the deal to bail out Cyprus has undermined faith in Europe’s financial system.

The 17-nation currency weakened against most of its 16 major peers after the provisional agreement that would make Cyprus the fifth country to tap a rescue since the euro crisis began in 2009. The bailout accord will see Cyprus Popular Bank Pcl wound down, wiping out bondholders, and will impose losses on some depositors at Bank of Cyprus Plc.

The Cyprus accord spares bank accounts below the insured limit of 100,000 euros. It imposes losses that two European Union officials said would be no more than 40 percent on uninsured depositors at Bank of Cyprus, which will take over the viable assets of Cyprus Popular Bank.

The first accord, reached March 16, fell apart three days later when the parliament in Nicosia rejected a key plank, a tax on all bank accounts that sparked the indignation of smaller depositors. Lawmakers in Cyprus voted last week to impose capital controls to prevent a run on deposits when they reopen.

The British pound fell against the U.S. dollar on the background data for the approved applications for mortgage BBA, the number of which was reduced to 30.5 million in February vs. 33.6 thousand and 32 thousand in January. Companies and homeowners the UK in February to pay their debts, and the amount of borrowing from large banks remained fairly low.

EUR / USD: during the European session the pair fell to a new low of $ 1.2949

GBP / USD: during the European session the pair fell to a new low of $ 1.5191

At 15:45 GMT a speech Deputy Managing SNB Jean-Pierre Dantin. At 17:15 gave a speech Fed chairman Ben Bernanke and Bank of England Governor Mervyn King. At 21:45 GMT New Zealand will release the trade balance (for 12 months, from the beginning of the year) and the trade balance for February.

EUR/USD

Offers $1.3100/10, $1.3075/85, $1.3050

Bids $1.2985/80, $1.2885/75, $1.2840

GBP/USD

Offers $1.5350, $1.5315/30, $1.5280, $1.5250

Bids $1.5190, $1.5165/60, $1.5125/20, $1.5100/090

AUD/USD

Offers $1.0595/00, $1.0550, $1.0520/30, $1.0490/00

Bids $1.0420/15, $1.0410/00, $1.0385/80, $1.0365/60, $1.0355/50

USD/JPY

Offers Y95.95/00, Y95.75/80, Y95.50, Y95.15/20, Y94.95/00

Bids Y94.40/35, Y94.25/20, Y94.00

EUR/GBP

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

Bids stg0.8485/80, stg0.8450/40, stg0.8410/00

EUR/JPY

Offers Y124.80, Y124.45/50, Y123.95/00, Y123.80/85

Bids Y122.75, Y122.55/50, Y122.05/00, Y121.85/80

U.K. mortgage approvals for house purchases declined to 30,506 in February from 31,983 in January, the British Bankers' Association reported Monday. It was forecast to rise to 33,500.

Likewise, the number of other secured borrowing fell to 8,914 from 9,429 a month ago. Meanwhile, re-mortgages totaled 15,980, up from 15,184 in the prior month.

The value of mortgages approved for house purchases decreased to GBP 4.7 billion from GBP 4.8 billion in January.

"Low interest rates allow homeowners more scope to increase repayments on their mortgages and reduce the outstanding amount," BBA statistics director, David Dooks said.

"Annual growth in unsecured borrowing on credit cards and personal loans has edged up over recent months, albeit remaining subdued," said Dooks.

Germany alloted E2.915bln of new 12-month Bubill Monday at average yield 0.017% (0.0353%), cover 1.5 (2.2).

ITALY BTPEI AUCTION RESULTS: Sold E1.0bln vs target E750mln-E1.0bln

- E616mln of 1.70% Sep 2018 BTPei; avg yield 2.16%, cover 2.02

- E384mln of 2.60% Sep 2023 BTPei; avg yield 3.02%, cover 2.96.

ITALY CTZ AUCTION RESULTS: Sold E2.825bln vs target E2.0bln-E3.0bln

- E2.825bln of Dec 2014 CTZ; avg yield 1.746% (1.682%), cover 1.43 (1.65).

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 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.

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The euro rose versus most of its major counterparts as finance ministers from the currency union approved a bailout plan for Cyprus, reducing the risk of a default and a disorderly exit for the nation. The 17-nation currency rebounded from its biggest weekly loss in six against the yen as the so-called troika of international creditors prepared to deliver a 10 billion euro ($13 billion) rescue package. The agreement calls for Cyprus Popular Bank Pcl (CPB) to be shut down and split, according to unidentified EU officials. Deposits below the EU guarantee ceiling of 100,000 euros will be protected, and a loss of as much as 40 percent will be imposed on uninsured depositors at the Bank of Cyprus, two officials said. Uninsured depositors at Cyprus Popular would largely be wiped out, two other officials said.

Federal Reserve Chairman Ben S. Bernanke is scheduled to speak at a conference sponsored by the London School of Economics at 5:15 p.m. London time. The U.S. central bank would alter its monthly purchases of $85 billion in bonds in response to gains in the job market, Bernanke said last week.

U.S. Commerce Department data this week will probably show orders for durable goods rebounded 3.9 percent in February from a 4.9 percent drop the month before, according to the median estimate of economists surveyed by Bloomberg News before the release tomorrow. Analysts in a separate poll predicted consumer spending gained 0.6 percent in the same period after growing 0.2 percent in January, ahead of the March 29 report.

The yen weakened against all its major peers before Bank of Japan Governor Haruhiko Kuroda speaks to lawmakers tomorrow.

The Australian dollar touched an almost two-month high against the greenback as Asian stocks advanced.

EUR / USD: during the Asian session, the pair rose to $ 1.3050.

GBP / USD: during the Asian session, the pair rose to $ 1.5260.

09:30 United Kingdom BBA Mortgage Approvals February 32.3 33.6

15:45 Switzerland Gov Board Member Danthine Speaks March

17:15 U.S. Fed Chairman Bernanke Speaks March

17:15 United Kingdom BOE Gov King Speaks March

21:45 New Zealand Trade Balance, mln February -305 -15