Another quiet session as the Cyprus saga continues to mesmerize the markets. As of now there does not seem to be a satisfactory resolution forthcoming. The banks of Cyprus are slated to open on Thursday, but given the resounding rejection of the bank levy tax (36 NO / 19 Abstained / 0 YES) and the fact that there doesn't seem to be much optimism of coming to a meaningful solution, it would be a bit of surprise if they did indeed do so. One would have to assume that when they do open there will be a rush on the banks which could bring about a total collapse of that nations' banking system. This, in turn, could pressure them to leave the Euro and that could be the domino that brings the European unions' existence into question. This cannot be the scenario that the Euro Group envisioned when it proposed this controversial plan... could it?
On the data front, the UK will release its "Claimant count", which is a preliminary indicator of the employment situation, along with the MPC minutes and their Annual budget. Later on we get the FOMC.