The euro held steady on Wednesday as investors were keeping cool heads ahead of ECB meeting on Thursday. The political turmoil in Italy continues to concern investors as the leader of the centre-left bloc, Pier Luigi Bersani is trying to form a government. However, the chances of a unity coalition are slim in a deeply divided southern European country. The controversial banking bailout of Cyprus is another reason why the euro is perceived to be a in a vulnerable state…

The single currency kept relatively steady following lacklustre job numbers and the impending Cyprus rescue package. Most analysts are expecting the eurozone to deteriorate further crisis around the continent keep popping up like mushrooms. During European trading hours, the euro was down 0.1 per cent against the dollar which has shown sign of recovery in recent weeks, spurred by larger economic developments in the US…

During Asian trading hours, euro edged slightly but remained around the 4-month lows as banks in Cyprus reopened on Thursday amid massive and draconian security arrangements. The banks had been shut for almost two weeks as the government had feared a massive outflow of funds from Cyprus. For instance, Russians started withdrawing funds as soon as rumours of the tax levy started circulating…