Cyprus to cancel Tuesday's bailout vote

FXstreet.com (San Francisco) - The Cyprus' president Nicos Anastasiades has affirmed that he doesn't have enough votes to pass the bailout and levy proposal tomorrow and the government in Nicosia is cancelling the Tuesday vote, according to Antenna TV information.

Furthermore, the Central Bank of Cyprus decided to extend the current bank holiday until Thursday.

Ashraf Laidi commented in a recent report that the next event risk for EURUSD will be the announcement from Cyprus. "Also note the ECB said will provide the necessary liquidity if the Parliament approves the depositor-levy, so look out for a potential spike in the EURUSD after the Parliament’s announcement especially if there is a noticeable reduction in the burden on smaller depositors (below €20,000)."

The EUR/USD has reacted down to the vote's cancellation and currently the pair is trading at 1.2930, extending declines from 1.2995.