LONDON SESSION: Markets quiet heading into year's end

http://www.forex.com/uk/post?SDN=a0624b74-8038-4b12-b1ae-a66c0f5176f1&Pa=20db1fa6-e674-420c-9a87-2ee29261d638

The dollar weakened following yesterday’s disappointing U.S. data releases and year-end trading remained thin. There was an absence of economic data out of Asia last night and Europe saw a very light data flow. The November Euro zone M3 money supply grew +1.9% YoY higher than the forecast of +1.6% (prior +0.9%) indicating that the ECB’s expansionary policy is impacting the money supply. German December CPI was released higher than expected with a MoM rise to +1.0% vs. expected +0.9% and prior +0.1% and YoY printing at +1.7% (cons. +1.5% prior +1.5%). This is largely in line with German state CPI figures for December which showed that inflation picked up in five German states. EUR/USD bounced from lows around the 200-day sma which comes in around 1.3085 to current levels of about 1.3130 on the back of a softer dollar.
In Switzerland, the December KOF leading indicator came in line with expectations at 2.10, a drop from the prior 2.13 signaling a slight decline in the momentum of growth. The Swiss franc traded stronger with USD/CHF and EUR/CHF trading near record lows.
There is no US economic data scheduled for today.

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