ForexLive Americas Wrap: The Cyprus Saga Continues

Canadian Jan retail 1.0% from 0.6% exp m/m, lead by autos US Jan FHFA house prices 0.6% v 0.7% exp US Mar manufacturing PMI 54.9 v 55.1 exp. Output index 56.8. Employment index 54.6 US Feb Bloomberg consumer conf -33.9 from -31.6 prior US Feb existing home sales 4.98m v 5.01m exp. Annual rate highest since Nov09 Median home prices post biggest gain since Nov05 +11% US Mar Phily fed 2.0 v -1.5 exp, new orders up 0.5, employment up 2.7, paid prices +8.5 US Feb leading indicators 0.5% v 0.4% exp US FED bought $1.46bn in 2036-2043 range Italy announces increase debt by E40bn over 2013/14. Consequently raises 2013 deficit target to 2.9% of GDP from 1.8% and cuts 2013 growth target to -1.3% from -0.2% Italy president to announce next step in government formation process Friday Italy's Bersani proposes reform progamme to president. US Fed buys $17.75bn MBS MAr 14-20 down from $21.55bn prev week. Canada release budget proposals and forecasts Cyprus  Central bank gov announces resolution process CY government tables wealth fund & banking bills proposal Troika approves proposals Central bank to apply capital controls Eurogroup/Cyprus statement released, much ado about nothing A fairly stable start to the session was interrupted by Cyprus news. The FOMC was a long distant memory and Kurodas uninspiring first speech had already set the tone for USD/JPY. We spent the day sliding amid a mixed bag of light US data and towards the afternoon broke down through bid at 95.20, 95 and 94.80 to a low of 94.55 ahead of good bids at 94.50. The sell off was partly blamed on Euro woes but the Japanese financial year is at the end of the month and could be having an effect. We've recovered somewhat but are looking to close below the 95 big figure. GBP/USD couldn't add to it's retail sales gains but has held up well against it's partner EUR/USD.  EUR/GBP has recovered from it's dip below 0.8500 but is still looking soft with sterling seemingly finding a bounce in its step. EUR/USD has been up and down like a yoyo in a 50 odd pip range. Tape news has been keeping everyone on their toes as we still await a solution in Cyprus. Bids down at 1.2880 said to be of the BIS variety stifled any attempt at the downside while positively viewed news was soon sold into. We close the session around the 1.29 handle with a vote still to come out of the Cyprus parliament. AUD/USD broke higher through tech levels at 1.0414.and popped a reported barrier at 1.0450 before settling below. EUR/AUD was the main driver also dropping dropping through big tech levels and the pair goes out on the lows at 1.2343 down 130 odd pips on the day. USD/CAD took a swoon from the 1.0250 level to tickle bids below 1.0200 with half an eye of retail sales. The figures came in above expectations and the bounce took us swiftly back up again.