Your forexlive.com ENewsletter

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• Cyprus update
• Cyprus reaches a bailout deal
• Cyprus nearing deal
• Bank of Cyprus accounts may be taxed 25%, deal possible Saturday
• US Senate passes first budget in four years
• Downside euro risks materializing after Cyprus vote delayed

Cyprus update Posted: 23 Mar 2013 05:36 PM PDT Its still a very fluid situation Eurozone finance ministers meet in Brussels at 5 p.m. GMT Sunday. Cypriot President Anastastiades is leaving for Brussels on Sunday morning , negotiations to continue there Nationalized pensions are off the table, not to be part of the package 20% ‘one off’ levy/tax on deposits over EUR100k at Bank of Cyprus, 4% on over EUR100k at others (see Adam’s earlier post) Monday is the deadline for a deal

Cyprus reaches a bailout deal Posted: 23 Mar 2013 11:42 AM PDT Various reports say the Cypriot government and Troika have agreed on a deal. Parliament is likely to vote later today. The deal will include a 20% tax on deposits at the Bank of Cyprus and a 4% levy at other banks. Pension funds will not be part of the package, according to Reuters who cites an anonymous source. It`s a harsh deal but that was expected. If the deal is approved, look for the euro to climb when markets re-open as uncertainty is removed. Of course, last week the government reached a deal to tax accounts 10% and it all fell apart in parliament.

Cyprus nearing deal Posted: 23 Mar 2013 11:37 AM PDT The latest report from the Financial Times fleshes out some of the details of what looks like the final deal. It includes a 20-25% levy at Bank of Cyprus. Government officials said the talks were going well, and there was growing optimism in both Nicosia and other EU capitals at the prospect of a deal. Of course, no deal is done until the votes are counted.

Bank of Cyprus accounts may be taxed 25%, deal possible Saturday Posted: 23 Mar 2013 08:45 AM PDT Cyprus Finance Minister Michael Sarris said `significant progress`had been made and said talks were centered on a possible levy of around 25% on holdings of over 100K euros at Bank of Cyprus. A 10% levy doesn`t sound so bad anymore. Earlier reports said a deal wouldn`t be done today but Sarris said the package could be ready “late this afternoon or early evening” for approval by parliament.

US Senate passes first budget in four years Posted: 23 Mar 2013 08:28 AM PDT The budget passed 50-49 at about 5 a.m. after a marathon voting session. Don’t get too excited, the House will never pass it.

Downside euro risks materializing after Cyprus vote delayed Posted: 23 Mar 2013 05:51 AM PDT The vote in Cyprus’ parliament to impose a deposit levy was supposed to take place today but it has been pushed back, likely to Monday. The change adds an element of uncertainty, which will likely hurt the euro at the open. Party leaders from Cyprus will travel to Belgium for meetings with eurozone finance ministers on Sunday and won’t hold a vote until they return. “We will meet after the Eurogroup meeting. I don’t know when,” a senior lawmaker from Cyprus told Reuters.

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