Idea of the Day Focusing back on the single currency, which earlier in the week managed to regain the losses seen in the wake of last week’s surprise rate cut. Some of the reasons why the single currency has done relatively well are outlined in our latest blog (see “Why the euro will do well”). In summary, the rate cut was the least effective option available to the ECB and the dynamics of a low inflation zone with a comfortable current account surplus are often positive for a currency, especially when rates are near zero on most of the other major currencies. This should be borne in mind for the bigger picture, rather than the day to day gyrations. Overnight there was a brief push above the previously broken trendline (which today comes in at 1.3402) and acts as initial resistance. The confirmation hearing of the new Fed chair Yellen takes place today and there were some initial ‘dovish’ noises yesterday which helped weaken the dollar into the close. Data/Event Risks USD: The new Fed Chair begins her nomination hearing today, when she will be rigorously questioned regarding her views on the economy, labour market and lots of other subjects besides during her appearance on Capitol Hill. She is seen as a ‘dove’ and if this is further confirmed, the dollar will be vulnerable to further losses. EUR: Initial expectations were for eurozone GDP to expand by 0.1% QoQ, but after slightly weaker than expected numbers from France this morning, this could turn out flat. The single currency would be more vulnerable to a negative reading, give the risk of the eurozone moving back into recession. Latest FX News USD: Prepared testimony released ahead of Yellen’s confirmation hearing today proved to be modestly bearish for the dollar, saying that the economy and labour markets were performing “far short of their potential”, suggesting both must improve before stimulus is withdrawn. Tapering bets for December were reduced and the dollar was at 1 week low on the dollar index before seeing a modest recovery during Asia trade. Further reading: USD/CAD: Continues To Maintain Up Bias Triggered Off The 1.0181 Level French economy disappoints and contracts in Q3 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 Forex Analysis: USD/JPY Advances to Key 100.00 Resistance Level James Chen 9 years Idea of the Day Focusing back on the single currency, which earlier in the week managed to regain the losses seen in the wake of last week's surprise rate cut. Some of the reasons why the single currency has done relatively well are outlined in our latest blog (see "Why the euro will do well"). In summary, the rate cut was the least effective option available to the ECB and the dynamics of a low inflation zone with a comfortable current account surplus are often positive for a currency, especially when rates are near zero on most of the other… 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.