Morning Update

Good Morning Traders
So we have finally come to an agreement the game of cat and mouse between the ECB and the Cypriot government seems to be over. The deal was announced early this morning, the deal will hopefully free up aid for the nations ailing finances and the countries banking sector will begin a deep restructuring process. Cyprus will be granted €10bn of emergency loans, and individuals with less than €100k in bank deposit accounts will receive protection under their European principles.As we mentioned last week we were always expecting a deal to be reached and as we saw towards the end of the trading week last week that markets had already priced in a deal, assuming that a solution will be found. On the back of this news we have seen all the European equity markets move into the Green, and the EURUSD traded up at 1.3048, its highest level in two weeks.
We expect to see a rally of some sort in the equity markets on the back of the good news from Cyprus, this will be positive for stocks in the short term and it will put an end to any speculation that we might see the turmoil spill over to other struggling European nations. We expect to see S&P breach its high this week as data from the US has continued to support the strong move we have seen since January.  As we mentioned last week, we are beginning to see news headlines out of Italy as they continue in an effort to form a new government, I would expect to see Italy take over the headlines as Cyprus will now be a thing of the past.

Happy Trading
@lowkeycapital