Idea of the Day Let’s take a broader look at the dollar. The dollar index itself is near a 6 week low, just above the 80.0 level. This happening after what was meant to be a better payrolls number and as a budget agreement in the US looks to be possible before the year end (and possibly this week). On top of his, we are approaching a Fed meeting in two week where tapering is a real possibility. Some of the Fed’s more hawkish voices were speaking yesterday, with long-term hawk Fisher saying “we should get started as soon as possible”. So why is the dollar weaker? There are two principle reasons for this. Firstly, as we’ve mentioned before, the Fed has successfully split the difference between tapering and tightening, convincing markets that if they reduce monthly asset purchases, it does not mean that higher rates are just around the corner. Secondly, the fact is that the euro has been relatively strong, for reasons that we have highlighted before. But risks remain, not least on the possibility of tapering which we put at 40% for this month. Data/Event Risks GBP: The latest manufacturing PMI data surprised to the upside and although today’s data is for October, it does nevertheless set up a positive backdrop for the production sector in the fourth quarter. Markets expect today’s data to rise 0.4% MoM. Notably stronger numbers (above 1.0%) would allow sterling to take on the highs made in the Asia session. Latest FX News GBP: Upbeat comments from BoE governor Carney helping sterling, the BoE governor sounding bullish on longer-term growth prospects, but warning against early interest rate increases. Cable high of 1.6466 overnight. EUR: Creeping higher during Asia trade against the backdrop off a broadly weaker dollar, EURUSD high of 1.3768. The reasons for euro strength that we’ve highlighted remain valid but becoming more stretched at these levels. JPY: Slightly firmer yen emerging at the start of the European session, but coming back after further weakness against the euro which has seen EURJPY move briefly above the 142 level overnight. Further reading: Euro bears’ last stand, rough road for GBP, tapering chances and more [Video] EURUSD: Builds On Bullish Strength 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.10 – Steady Despite Weak Eurozone Numbers Kenny Fisher 9 years Idea of the Day Let's take a broader look at the dollar. The dollar index itself is near a 6 week low, just above the 80.0 level. This happening after what was meant to be a better payrolls number and as a budget agreement in the US looks to be possible before the year end (and possibly this week). On top of his, we are approaching a Fed meeting in two week where tapering is a real possibility. Some of the Fed's more hawkish voices were speaking yesterday, with long-term hawk Fisher saying "we should get started as soon as… 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.