March 18, 2013 ForexLive Americas Wrap: Markets Cy-Pressed to the Downside

The forex trading headlines for US trading today:

Eurogroup gives Cyprus more flexibility on bank levy - RTRS
Eurogroup statement after conference call
US March NAHB housing market index 44 vs 47 exp
Canada budget will assume 2013 GDP growth of 1.6%
UBS slashes euro near-term forecast
Cyprus to close banks until Thursday
S&P 500 down 0.5% to 1552
EUR lags, JPY leads

The euro bounced in early US trading and then faded later. Large bids came in at the Europe close and boosted EUR/USD near 1.3000 but offers ahead of the big figure and continued concern about Cyprus halted the rally and it skidded back to 1.2925. The latest headline about easing levy terms led to a rebound to 1.2955.

USD/JPY was quiet in a 30 pip range around 95.00 for the early part of the session but better risk appetite tripped buy stops above 95.25 on the way to 95.60. Consolidation since and now at 95.33.

The Australian dollar was a standout performer in European and US hours. After opening 70 pips lower, AUDUSD recouped all its losses, touching 1.0410. Offers protecting Friday`s high of 1.0414 have capped the move so far.