The euro spiked up against other major currencies in early Asian deals on Monday, after Cyprus entered into bailout deal with Eurozone finance ministers, preventing island nation's banking system from collapsing.
Under the deal, Cyprus bank Laiki will be restructured with holders of deposits above 100,000 euros forcing to take losses. The bank's deposits of less than 100,000 euros will be transferred to the Bank of Cyprus.
In the meeting at Brussels, the Euro group reconfirmed to provide financial assistance of up to 10 billion euros to Cyprus.
The European Central Bank will provide liquidity to Bank of Cyprus, but the uninsured deposits will remain frozen until recapitalization has been effected.
The plan envisages protection of all insured depositors in all banks in accordance with the relevant EU legislation. The bailout money of EUR 10 billion will not be used to recapitalise Laiki and Bank of Cyprus, the Eurogroup said in a statement.
The euro advanced to 1.3049 against the greenback for the first time since March 15. The single currency thus added 0.38 percent from last week's close of 1.2999. The euro may seek resistance around 1.31 level.
The euro climbed to a 6-day high of 1.2250 against the franc, up 0.24 percent from Friday's New York session close of 1.2221. If the euro rises further, it may break 1.23 level.
The 17-nation currency reached a 4-day high of 0.8560 against the pound, after having recovered from Friday's new multi-week low of 0.8487. On the upside, the euro may break next target level around 0.865.
The euro area currency advanced to 123.87 against the yen, its highest since March 21. The euro may find resistance around 126.00 level. The pair finished last week's trading at 122.83.
The euro approached a weekly high of 1.2499 against the aussie from last week's close of 1.2443. The euro is poised to break next upside target level around 1.255.
The euro firmed to a 10-day high of 1.3346 against the loonie, up 1.25 percent from last week's 2-month low of 1.3181.
The euro that closed Friday's trading at 1.5556 against the NZ dollar advanced to a 4-day high of 1.5630. The next upside target level for the euro is seen around 1.57.
Looking ahead, U.K. nationwide house prices for March and mortgage approvals for February are due in the European session.
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Forex News
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.