Forex Flash: Cyprus to trigger unintended consequences across Europe - Westpac

FXstreet.com (Barcelona) - According to Westpac strategist Robert Rennie, the Cyprus bailout announcement and the possible consequences on bank depositors on the proposed tax "is likely to generate unintended consequences across Europe."

"The consequences could be that we see a period of instability in financial markets across Europe after six months of improvement. The EUR is likely to continue its slide in our view. Indeed, the consequences could be deeper" Robert notes.

He adds: "We remain short EUR/USD and EUR/GBP and expect recent weakening to continue."