EUR/USD trade steady today

Good Morning,

- EUR/USD trade steady today after yesterday’s rally despite weaker than expected German Service PMI and Consumer Price Index.

- Asian shares stabilized on Tuesday after four straight days of losses, while the dollar rebounded from overnight weakness after disappointing U.S. services sector data raised concerns about stuttering growth in the world's largest economy.

- The dollar DXY added 0.1 percent, recouping some of the softness after the U.S. services data.

- Late on Monday, the U.S. Senate confirmed Janet Yellen, a key force behind the Fed's unprecedented and controversial efforts to boost the U.S. economy, as the next Fed chair to succeed Ben Bernanke, whose second four-year term expires on January 31.

- The united stimulus front of central banks is starting to splinter as 2014 dawns. The Federal Reserve -- soon to be led by Janet Yellen, - begins pulling back on its quantitative easing amid stronger U.S. growth, and the Bank of England is trying to cool its housing market. The European Central Bank and Bank of Japan lean toward more monetary action to fight weak inflation. The ECB and BOE both hold policy meetings this week. The erosion of the mostly synchronized stimulus that supported the world economy for the past six years has investors anticipating a stronger U.S. dollar and weaker Treasuries. That’s not to say the era of easy money is over, as the need to guard against deflation -- as well as the fear of unsettling markets or upending economic expansion -- leaves the Fed and its counterparts pledging to keep interest rates at record lows.

- ECB sources say no major policy changes expected this week. Repeats Negative rates is uncharted territory, 10 bps depo rate cut considered.

- According to estimates of the Federal Statistical Office (Destatis), retail turnover 2013 in Germany is expected to be in nominal terms between 1.6% and 1.8% larger than in 2012. In real terms turnover is expected to increase by between 0.3% and 0.5%. This estimation is based on data for the first eleven months of 2013.

- SNB's Jordan: cap of CHF is right policy tool for near future.

- Data from the Institute for Supply Management showed yesterday the pace of growth in the U.S. services sector slowed for a second straight month in December with business activity expanding at a slower rate and new orders contracting.

- Australia's trade deficit narrowed more than expected in November, as imports fell while exports remained flat. The trade deficit reached a seasonally adjusted $118 million in November, falling from a revised $358 million gap in October. Economists were forecasting a deficit of $300 million.

- The Indonesian rupiah lost 0.7 percent to 12,255 per dollar, edging closer to a five-year trough of 12,278 set on December 27.

- According to data from the Commodity Futures Trading Commission, currency speculators pared bets in favor of the dollar in the week ended December 31 to the lowest in about six weeks.

- Gold advanced 0.4 percent to $1,242.04 an ounce, heading for a sixth straight day of gains and sitting not far from a three-week high of $1,248.30 set on Monday.

- Watch today: German jobless, EU CPI, US chain store sales

Have a nice Day !