For now though, the 1.29, while marginally breached, still sees buying interest.
To put things into perspective, some may wonder why a country the size of Cyprus is able to cause such a drop in the Euro, one that overstretches in magnitude any recent sell-off seen, even the slide post the unresolved Italian-elections.
Despite the perceived Euro value has been taken like a rubber band to an extreme where interest to become a Euro buyer at short term low wholesale prices may arise, there seems to be two main themes still holding players back from participating into the market.
Firstly, there is huge uncertainty over how much this will impact confidence around other peripheral countries, as the prospect of a first bold robbery from hard-earned small saver's bank deposits sets a dangerous precedent.
Secondly, the fact that up until now, reports coming in suggest the bank tax levy is still far from certain, with the parliamentary voting scheduled this Monday.
As a matter of fact, is worth remembering that Cyprus ruling government does not enjoy a majority in the chamber, meaning that rejection to ratify the unpopular act of theft may lead to large banks in the country collapsing.
If Cyprus is able to renegotiate the bank deposit tax to only target uninsured deposits above €100,000 or even if it doens't, the levy is approved without significant drame in confidence around other peripheral Eurozone countries, which would suggest no immediate risk of outflows from Spain, Italy, Portugal, etc., the Euro may start to see saavy Euro buyers re-emerge.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.