All of the major banks seem to be aligned, that we will not get any major fall-out from the events in Cyprus, but EUR/USD doesn’t seem like it wants to rally at all. Unless I’m mistaken, the biggest rally we have seen at any stage today has been 30 pips and that to me is a market that wants to go lower; gap or no gap. Of course the big European players may walk in, have a laugh at the silly Asian market for selling off on this news, and promptly reverse everything.
I think a lot of big asset managers will have a long look at their portfolios today and really question whether they want to be in the EZ as opposed to the US.