When we get a big event like the Cypriot bank bail-out, the major banks click into overdrive. All of their main analysts will have been busy over the last 24 hours formulating their opinions and today they will have organised conference calls with all of their big clients. The same clients probably deal with multiple big banks and will have sat through multiple conference calls.
I’ve probably read close to 20 of these analysis pieces already today, and like I said earlier the main consensus is that there will be no run on European banks as the Cypriot situation is a unique one.
Nevertheless all of them are sounding notes of caution so the first instinct for many players will be to lower their EUR exposure and then reassess. This is why the EUR is remaining under steady selling pressure but not yet panicking. Next technical support in EUR/USD is a daily low near 1.2875.