EUR/USD Unable to Recover, Despite Strong German Data

EUR/USD gradually climbed up from support at 1.2750 and made its way towards 1.28. The pair already crossed this level, but was unable to keep it up.

This comes despite strong German data and as markets await the opening of banks in Cyprus.

Update: The pair now falls to support on weak unemployment figures.

German retail sales rose by 0.4%, significantly exceeding the drop of 0.5% that was anticipated. Last month’s figure was revised from +3.1% to +3%.

Nevertheless, EUR/USD is now at 1.2788, down from 1.2814 seen earlier.

Banks in Cyprus open at 10:00 GMT and the tension is high. Capital controls have been imposed to prevent a massive bank run. They are currently planned for only one week, but they could be extended.

The stock exchange remains closed in Cyprus.

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