Idea of the Day With the Fed out of the way, volatility in markets has died down and is likely to remain muted today and for the early part of next week. With tapering having started, markets are struggling to find the next ‘theme’ that will dominate for the early part of next year. They may struggle to do so, because our belief is that markets are likely to remain messy in the early part of 2014, before a stronger dollar takes hold from the second quarter onwards. The main standout from overnight trade is the modestly firmer tone to the dollar, which has allowed USDJPY to move to the 104.50 area. In contrast, the Aussie has managed to recover some of its poise and pull away from the lows made early yesterday. Today is the end of the week, which could make for some positioning flows later on, but again these are likely to be minor. Data/Event Risks USD: Today’s data not a major risk event for the dollar, with just personal income and spending. Michigan confidence just the final release, so is also not likely to move markets. Latest FX News AUD: Some short covering in Asia trade and suggesting that the recent weakness may have run its course. AUDUSD holding above 0.8850 in Asia trade. GBP: Latest consumer confidence data form the GfK weaker than expected at -13 (from -12), which is still just off levels last seen in 2008. Cable succumbed to the firmer dollar tone overnight, but holding above the 1.63 level. Further reading: EUR/USD Dec. 20 – Downward Trend Continues Following Fed Taper Monetary policy divergence will guide future price actions of currency markets FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Daily Look share Read Next This week in the markets: Fed decides to start tapering Yohay Elam 9 years Idea of the Day With the Fed out of the way, volatility in markets has died down and is likely to remain muted today and for the early part of next week. With tapering having started, markets are struggling to find the next 'theme' that will dominate for the early part of next year. They may struggle to do so, because our belief is that markets are likely to remain messy in the early part of 2014, before a stronger dollar takes hold from the second quarter onwards. The main standout from overnight trade is the modestly firmer tone to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.