Important events today:

US: Treasury Department auctions

UK: Bank Holiday.

Some traders and bankers will still not trade today as they are on Christmas break, with a number of investors returning to active trading. From the opening of the European trading session we should expect an increased volatility in the first two hours, because this situation has almost always happened in the past. There are two factors which will have a strong influence on the trading today.

On the one hand, the U.S. Treasury Department will hold $79bn treasury bond auctions, which will reduce the dollar liquidity surplus in the financial system and is positive for the U.S. currency. On the other hand, at the commodity market it is possible to expect a high demand for energy carriers amid imbalance of supply and demand at the oil and natural gas market, which will have a negative impact on the USD value, as the raw materials are quoted in the US currency.

Recommendations: flat 1.0600 -1.0700.