Idea of the Day For markets at least, the strength of the euro was the main surprise going into the end of last year. Some of this strength was based on temporary factors related to year end and balance sheet dressing on the part of European banks. Money market rates moved substantially higher as a result, supporting the stronger tone to the euro. It could well be that we see a heavy tone to the euro this week as these effects unwind. Note that excess liquidity (the amount of liquid funds banks are holding above their requirements) jumped to the highest level since March on Tuesday and even if most of this move is unwound, some of it should feed through to lower money market rates and a softer single currency. Data/Event Risks GBP: The manufacturing PMI data has been very robust for nearly the past year now, with the December reading at levels last seen in early 2011. Market expects a steady outcome, but firmer number would put further fuel underneath the sterling rally. USD: The weekly claims data have been largely ignored in recent weeks owing to underlying volatility and distortions, with small rise from 338k to 342k expected in today’s release. The manufacturing ISM release is seen falling modestly to 56.8. Latest FX News AUD: Starting the European session bang on the 0.89 level. We see the Aussie as one of the weaker performers in the coming year on the majors. Data is thin both this week and next. GBP: Sterling has been performing well in recent sessions, with cable touching the 1.66 level during Asian trade. This looks to be more a factor of the softer tone being seen in both the dollar and also the single currency. CNY: The HSBC Manuf PMI data showed the anticipated fall from 50.8 to 50.5, but causing some softness in Asian equities. USDCNY still on a weakening trend, just above the 6.05 level. Further reading: UK Manufacturing PMI slides to 57.3 points – GBP/USD dips GBP/JPY: Bull Strength Remains Intact 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 Crunch Key Metrics December 2013 and 2013 Roundup Yohay Elam 9 years Idea of the Day For markets at least, the strength of the euro was the main surprise going into the end of last year. Some of this strength was based on temporary factors related to year end and balance sheet dressing on the part of European banks. Money market rates moved substantially higher as a result, supporting the stronger tone to the euro. It could well be that we see a heavy tone to the euro this week as these effects unwind. Note that excess liquidity (the amount of liquid funds banks are holding above their requirements) jumped to the… 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.