Here is what you need to know on Wednesday, December 22:

The greenback struggled to find demand on Tuesday amid a positive shift witnessed in risk sentiment. Rising US Treasury bond yields, however, helped the dollar limit its losses and the US Dollar Index seems to have gone into a consolidation phase around 96.50 early Europe. Later in the day, the US Bureau of Economic Analysis will release its final revision to the annualized GDP growth for the third quarter. The Conference Board's December Consumer Confidence and November Existing Home Sales data will be featured in the US economic docket as well.

Despite a lack of positive developments surrounding the Omicron variant, Wall Street's main indexes managed to register strong gains on Tuesday with investors seeing the latest drop as an opportunity for bargain shopping. The benchmark 10-year US Treasury bond yield came within a touching distance of 1.5% but retreated modestly before turning quiet around 1.46% early Wednesday. US stocks futures are trading flat, suggesting that the risk rally has already lost its momentum.

EUR/USD tested 1.1300 for the second straight day on Tuesday but ended up closing the day virtually unchanged near 1.1280. The monthly data published by the European Commission showed that consumer sentiment deteriorated in the eurozone with the Consumer Confidence Index falling to -8.3 (preliminary) in December from -6.8 in November. The pair is currently trading in the negative territory around 1.1270.

GBP/USD is trading in a tight channel around 1.3250 early Wednesday as investors showed little to no reaction to the latest data releases from the UK. The Office for National Statistics reported that the annualized GDP grew by 6.8% in the third quarter, coming in better than the market expectation of 6.6%. Additionally, Total Business Investment in the UK contracted by 2.5% on a quarterly basis in the third quarter. 

USD/JPY capitalized on rising US Treasury bond yields and climbed to its strongest level in a week above 114.00. The pair is consolidating Tuesday's gains around 114.20.

Gold lost its traction after testing $1,800 on Tuesday and retreated to $1,790 area, pressured by recovering US Treasury bond yields. As it currently stands, XAU/USD could find it difficult to attract buyers unless it flips $1,800 into support.

USD/CAD closed modestly lower on Tuesday as the upbeat Canadian data, which showed that Retail Sales rose by 1.6% in October, helped the loonie stay resilient against its American counterpart. The pair is staying quiet around 1.2900 in the early European session.

Bitcoin registered decisive gains on Tuesday and continues to edge higher toward the critical $50,000 mark. Ethereum closed in the green for the second straight day on Tuesday and looks to settle above $4,000.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD falls toward 0.9600 amid renewed dollar strength

EUR/USD falls toward 0.9600 amid renewed dollar strength

EUR/USD has turned south and declined toward 0.9600 in the second half of the day on Monday. A sharp decline witnessed in the GBP/USD pair and the souring market mood provided a boost to the dollar, lifting the US Dollar Index back above 114.00. 

EUR/USD News

GBP/USD falls below 1.0700 following BoE statement

GBP/USD falls below 1.0700 following BoE statement

GBP/USD came under renewed bearish pressure and slumped below 1.0700 during the American trading hours. In a statement published on Monday, the Bank of England said that they welcome the government's commitment to sustainable economic growth, triggering another GBP selloff.

GBP/USD News

Gold could soon challenge the $1,600 level

Gold could soon challenge the $1,600 level

Demand for the dollar continued at the beginning of the week, resulting in XAUUSD plummeting to $1,626.67, its lowest since April 2020. Concerns about potential recessions undermined the dismal market’s mood, pushing the greenback higher despite its extreme overbought conditions.

Gold News

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin price has been devoid of volatility for the last week and has been in a tight consolidation without directional bias whatsoever. This range bound move has formed a triangle pattern which could break either way. 

Read more

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

The S&P 500 index lost 4.1% last week and left traders melancholy with another week to go in this dreadful September. The S&P 500 index is down 6.6% so far in the month that is already known for poor performance, and most seem to think the pain will continue. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures