The euro hit a four-month low against the dollar, amid contradictory statements of officials on the eurozone rescue program of Cyprus and its possible extension to other troubled economies in the region. Note that the largest Bank of Cyprus and Laiki will be closed until Thursday. In addition, it was reported that Bank of Cyprus will go through restructuring, and Laiki will be closed, and its healthy assets will be transferred to a competitor. The European Central Bank on Monday pledged to provide liquidity Cypriot banks have accumulated 68 billion euros of deposits. Without this measure, banks face immediate bankruptcy because of the expected mass withdrawals from the accounts.

Meanwhile, many investors are worried that the euro zone officials will continue to rescue troubled banks by depositors, as happened in Cyprus. Pressure on the euro was words of the chairman of Eurogroup Yerona Disselbluma that the plan of salvation of Cyprus a model for combating banking crises in the future. Disselblum also said that uninsured deposits should contribute to the salvation of Cyprus. ECB Kéré Disselblyumu said today that he did not agree with him and agreed on Cyprus is not a new model for Europe, adding that there is no reason to think that the French banks, the same problem as that of Cyprus. He also noted that the Cyprus problem only shows that the ECB should be independent supervisory body for banks in Europe.

Japan's currency fell against most of its 16 major counterparts, helped by comments Governor of the Bank of Japan Kuroda, who noted that the close cooperation between the government and the Bank of Japan will help to "smoothly" to achieve 2% inflation. Meanwhile, he added that the task of government - to stimulate economic growth, employment in the medium and long term. At the same time, he said that the price trends are influenced by various factors, such as fiscal policy of the government, the promotion of growth. In addition, he said the government would try to reach a level of 2% inflation for two years at any cost

The pound fell to balance report sales CBI Britain. Research trends CBI distributive trade in Britain reflected the drop in sales to 0 in the March 8 against the previous forecast of 11. However, expectations in April rose from 8% to 15% (with a maximum of December). Meanwhile, market sentiment influenced British Finance Minister comments Osborne, who made it clear that salvation holders of insured deposits in Cyprus - is a bad idea. He also noted that the final plan should not include saving the owners of insured deposits. In addition, he believes that the salvation of Cyprus was not well thought out, and it will leave Cyprus with sustainable debt. Osborne added that Cyprus is experiencing a sharp decline in GDP, and for all it would be better if the euro zone more quickly solved their problems.

With across-the-board government spending cuts creating uncertainty regarding the economic outlook, the Conference Board released a report on Tuesday showing a notable deterioration in U.S. consumer confidence in the month of March.

The Conference Board said its consumer confidence index fell to 59.7 in March from a revised 68.0 in February. Economists had expected the index to dip to 67.5 from the 69.6 originally reported for the previous month.

After reporting U.S. new home sales at their highest level in over four years in the previous month, the Commerce Department released a report on Tuesday showing that new home sales pulled back by more than expected in the month of February.

The report said new home sales fell 4.6 percent to a seasonally adjusted annual rate of 411,000 in February from the revised January rate of 431,000.

Economists had expected new home sales to drop to 425,000 from the 437,000 originally reported for the previous month.

EUR/USD $1.2750, $1.2805, $1.2810, $1.2815, $1.2900, $1.2950, $1.3000

USD/JPY Y94.00, Y94.30, Y94.70, Y95.00, Y95.20, Y95.50

EUR/JPY Y120.20

GBP/USD $1.5000, $1.5130, $1.5175, $1.5200

GBP/JPY Y144.50

AUD/USD $1.0400, $1.0450, $1.0475

AUD/JPY Y98.00

NZD/USD $0.8280

U.S. home prices rose more than expected during January from a year earlier, the biggest increase since the summer of 2006, according to Standard & Poor's Case-Shiller home-price indexes.

During January, the Case-Shiller index of 10 major metropolitan areas was up 0.2% and the 20-city index increased 0.1% from December. However, on a seasonally adjusted basis, the indexes both rose 1%.

On a year-on-year basis, the 10-city index grew 7.3%. The 20-city index improved 8.1%, above recent expectations of economists polled by Thomson Reuters for an increase of 7.9%.

Low mortgage rates, a reduction in foreclosures and a shrinking inventory of homes on the market--along with an improving economy--have been supporting a gradual housing-market recovery.

Still, the two indexes remain off 29% to 30% from their June/July 2006 peaks through January.

On a year-on-year basis, 20 cities recorded growth in home prices, with eight posting double-digit increases on a percentage basis. All the cities in the index except Detroit recorded a stronger pace of year-on-year price increases for the month. Meanwhile, New York-area home prices turned slightly higher, up 0.6%, after declining for 28 consecutive months.

Markets that were hard hit by the housing bust have been among those with the strongest growth lately. During January, Phoenix posted the biggest increase, at 23%. Las Vegas home prices were up 15%.

Though closely followed by economists and the markets, the Case-Shiller index is a lagging indicator of values--a moving average now two months old.

New orders for U.S. manufactured durable goods rose by more than expected in the month of February, according to a report released by the Commerce Department on Tuesday, although the increase was largely due to a rebound by orders in the volatile transportation sector.

The report said durable goods orders surged up by 5.7 percent in February following a revised 3.8 percent decrease in January. Economists had expected durable goods orders to rise by 3.5 percent compared to the 4.9 percent decrease that had been reported for the previous month.

Excluding orders for transportation equipment, however, durable goods orders fell by 0.5 percent in February compared to a 2.9 percent increase in January. Ex-transportation orders had been expected to increase by 0.7 percent.

EUR/USD

Offers $1.3050, $1.3020, $1.3000, $1.2940/50, $1.2900/10

Bids $1.2800, $1.2725/15

GBP/USD

Offers $1.5350, $1.5315/30, $1.5300, $1.5280, $1.5240/50, $1.5220/25, $1.5210

Bids $1.5125/20, $1.5100/090

AUD/USD

Offers $1.0595/00, $1.0550, $1.0520/30, $1.0500

Bids $1.0445/40, $1.0420/15, $1.0410/00, $1.0385/80, $1.0365/60

USD/JPY

Offers Y94.95/00, Y94.90, Y94.70/75, Y94.45/50

Bids Y93.85/80, Y93.55/50, Y93.20, Y93.00

EUR/GBP

Offersstg0.8650, stg0.8615/20, stg0.8600/05, stg0.8570/80, stg0.8555/65, stg0.8535/40, stg0.8510, stg0.8455/65

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

EUR/JPY

Offers Y122.95/00, Y122.65/70, Y122.00, Y121.85/90

Bids Y120.75/70, Y120.50, Y119.50

EUR/USD $1.2750, $1.2805, $1.2810, $1.2815, $1.2950, $1.3000, $1.3030, $1.3070

USD/JPY Y94.00, Y94.30, Y94.70, Y95.00, Y95.20, Y95.50, Y96.00, Y97.00

EUR/JPY Y119.60, Y120.20

GBP/USD $1.5000, $1.5130, $1.5175, $1.5200

GBP/JPY Y144.50

AUD/USD $1.0400, $1.0450, $1.0475

AUD/JPY Y98.00

NZD/USD $0.8280

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.

04:45 Australia RBA's Governor Glenn Stevens Speech March

The yen fell against most of its major peers as Bank of Japan Governor Haruhiko Kuroda outlined monetary easing options to achieve a 2 percent annual inflation goal in two years. Kuroda told lawmakers today that the BOJ will discuss purchasing more bonds with longer maturities. The BOJ currently buys government bonds maturing in up to three years through its 76 trillion-yen ($807 billion) asset-purchase program.

He also said the BOJ may scrap its so-called banknote rule of keeping central bank bond holdings at less than the value of banknotes outstanding. Policy specifics will be discussed at the BOJ board meeting scheduled for April 3-4, Kuroda said.

The euro traded 0.2 percent from a four-month low ahead of debt auctions in Italy, where lawmakers are trying to form a government after inconclusive elections last month. Italy is scheduled to sell bills today and bonds due in 2018 and 2023 tomorrow. The euro zone’s fourth-biggest economy auctioned 2.8 billion euros ($3.6 billion) of 2014 zero-coupon bonds yesterday at a yield of 1.746 percent, the highest since Dec. 27.

In the U.S., orders of durable goods probably 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 data is released today.

EUR / USD: during the Asian session, the pair rose to $ 1.2870.

GBP / USD: during the Asian session, the pair traded in a range of $ 1.5165/85.

USD / JPY: during the Asian session, the pair traded around Y94.20.

There is data on both sides of the Atlantic Tuesday, starting with the release of French data. At 0745GMT, French March housing starts/permits and the March consumer confidence survey are set for release. At 0900GMT, the Central Bank of Luxembourg is slated to present its latest Bulletin. At 1000GMT, European Central Bank Governing Council member Ewald Nowotny will participate in a panel discussion, in Prague. Additionally, the Portugal Bank of Portugal is set to publish its Spring Economic Bulletin, although no time is set. French February registered jobseekers numbers will be released at 1700GMT. There is little in the way of UK data, although the March CBI  Distributive Trades data will be released at 1100GMT. At 1425GMT, UK Chancellor George Osborne appears before the Treasury  Select Committee to be grilled on the 2013 Budget Statement.

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,2847 -1,09%

GBP/USD $1,5171 -0,38%

USD/CHF Chf0,9487 +0,85%

USD/JPY Y94,17 -0,34%

EUR/JPY Y120,99 -1,46%

GBP/JPY Y142,85 -0,74%

AUD/USD $1,0453 +0,10%

NZD/USD $0,8350 -0,06%

04:45 Australia RBA's Governor Glenn Stevens Speech March

07:00 United Kingdom Nationwide house price index March +0.2% +0.2%

07:00 United Kingdom Nationwide house price index, y/y March 0.0% +0.9%

07:45 France Consumer confidence March 86 86

08:00 Switzerland KOF Institute Economic Forecast Quarter II

10:00 United Kingdom Chancellor Osborne Speaks March

11:00 United Kingdom CBI retail sales volume balance March 8 12

12:30 U.S. Durable Goods Orders February -5.2% +3.8%

12:30 U.S. Durable Goods Orders ex Transportation February +1.9% +0.7%

12:30 U.S. Durable goods orders ex defense February +2.8% -0.4%

13:00 U.S. S&P/Case-Shiller Home Price Indices, y/y January +6.8% +7.9%

14:00 U.S. Richmond Fed Manufacturing Index March 6 8

14:00 U.S. Consumer confidence March 69.6 69.3

14:00 U.S. New Home Sales February 437 426