Idea of the Day This is the last full trading week of the year, but it should be a pretty interesting one. The Fed stands tall over the agenda, their two day meeting starting tomorrow. The prospects of the Fed reducing the amount of monthly bond purchases (tapering) have increased through December, this being reflected in the rise in the 2 year yield in the US through December. We would put the chances of this happening at 40%. The impact of this would immediately be felt on the dollar (firmer) and also equities (weaker). But because the Fed has moved to assure market that tapering does not mean interest rates are going up any time soon, the impact should not be as dramatic as would have been the case if the Fed started tapering in September. Data/Event Risks EUR: The advance PMI data always worth a close eye as they are the first indicator of economic activity for the Eurozone for December. Both manufacturing and services series are seen rising modestly. Stronger data would help offer further support to the euro, but it is looking a little tired at these levels. Latest FX News EUR: The euro has continued to perform relatively well during December, helped by a number of factors, including rising money market rates as banks adjust their balance sheets ahead of the upcoming stress tests. The recent high at 1.3811 remains the initial focus on the upside, but there is definitely a sense that the single currency may be starting to feel a little tired. AUD: The move below the 0.90 level seen last week, on the back of comments from RBA’s Stevens, has been sustained. A push below the low for the year at 0.8848 remains a possibility, especially if the Fed does choose to taper its bond purchases this week. CNY: The latest HSBC PMI data for the manufacturing sector a little weaker than expected, rising 50.5 against expected increase to 50.9. The impact was limited on the Aussie and elsewhere, with both CNY and CNH trading close to the 6.0720 level. Further reading: GBP/USD: Trading the British CPI French PMIs disappoint – EUR/USD slides 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 EUR/USD Dec. 16 – Higher After Positive German, Eurozone Kenny Fisher 9 years Idea of the Day This is the last full trading week of the year, but it should be a pretty interesting one. The Fed stands tall over the agenda, their two day meeting starting tomorrow. The prospects of the Fed reducing the amount of monthly bond purchases (tapering) have increased through December, this being reflected in the rise in the 2 year yield in the US through December. We would put the chances of this happening at 40%. The impact of this would immediately be felt on the dollar (firmer) and also equities (weaker). But because the Fed has moved… 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.