Talking Points:

• Liquidity returns next week in the first full week of 2014, reviving the potential for trend development

• Both risk and relative monetary policy will be key fundamental drivers to engage momentum

•Looking at parameters of risk and policy bearings, I am watching: GBPUSD, USDJPY, AUDUSD and others

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Volatility stirred this past week, but the real heft for a permanent increase in activity and trend development comes in the week ahead. With the return of liquidity, we will once again have the market depth necessary to support conviction. That puts key technical setups and important fundamental themes - such as general risk appetite and the relative monetary policy - in contention for serious trade setups. With event risk like NFPs to rekindle Taper concerns and an ECB decision to draw policy contrast, this may prove a great spring board for 2014 trading. We discuss the top themes and favored trades under different scenarios (GBPUSD, USDJPY, AUDUSD, EURJPY, EURUSD, etc) in the weekend Trading Video.

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