Barclays analysis of EUR/USD for the opening week of the year
(Bolding is mine)
- FX market liquidity dropped materially into year-end, with average daily EURUSD volumes about 1/3 of their 2015 average according to our VolT data.
- Our data also suggest, however, that activity will increase markedly this week, with daily EURUSD volume usually 10-20% higher than average in the first week of the year
And, their 'trade of the week':
- Long USDCNH: as Chinese officials place increasing emphasis on stability of the trade-weighted CNY, we think there is scope for significant weakness against the USD in an environment of Fed tightening.