Forex Today: Dollar keeps its footing ahead of mid-tier data
|Here is what you need to know on Wednesday, December 29:
The US Dollar Index closed the second straight day in the positive territory and continues to inch higher on Wednesday but markets are likely to remain quiet ahead of the New Year holiday. Later in the day, November Pending Home Sales and Goods Trade Balance will be featured in the US economic docket but these data are unlikely to trigger a noticeable market reaction.
Wall Street's main indexes closed mixed on Tuesday and US stocks futures indexes are posting modest gains in the early European session. The 10-year US Treasury bond yield continues to move sideways in a narrow range below 1.5%.
The US, the UK, France, Greece and Portugal all registered record-high one-day increases in new coronavirus cases on Tuesday but this development doesn't seem to be having a significant impact on risk sentiment. Reports continue to suggest that the Omicron variant is less severe than the Delta variant.
EUR/USD is testing 1.1300 after closing in the negative territory on Tuesday as the dollar's market valuation continues to drive the pair's movements.
GBP/USD turned south after touching its highest level in five weeks at 1.3463 on Tuesday. The pair is currently posting small losses around 1.3420.
USD/JPY preserves its bullish momentum and stays within a touching distance of 115.00 early Wednesday.
Gold climbed to its strongest level since late November at $1,820 on Tuesday but made a sharp U-turn. XAU/USD is edging lower toward $1,800 in the European morning.
Bitcoin lost more than 6% and broke below $50,000 on Tuesday before going into a consolidation phase around $48,000. Ethereum also suffered heavy losses and fell below $4,000 after managing to hold above that level in the previous five days.
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