Forex Today: Gold outshines amid trade deal woes in X-mas Eve markets

Dhwani Mehta FXStreet

Here is what you need to know on Tuesday, December 24:

Holiday-thinned quiet trading prevailed in Asia, with the same likely to extend in Europe, as all major European markets are closed in observance of Christmas Eve.

The risk sentiment remained tepid while the US dollar was broadly depressed amid disappointing US data and concerns about a phase one US-China trade deal. The Chinese rant over the US interference in Beijing’s internal affairs concerning Taiwan, Hong Kong and Xinjiang added to the trade deal concerns.

Most major stuck to tight trading ranges amid lack of fresh catalysts and muted session. USD/JPY traded flat below 109.50, the Aussie eased slightly from weekly tops while GBP/USD consolidated below 1.2950 amid looming Hard Brexit risks.

Among other key headlines in Asia:

BOJ Dec meeting’s minutes showed that “most members shared the view that there had been no further increase in the possibility that the momentum toward achieving the price stability target would be lost".

Premier Li's Monday's comment about RRR cuts underpinned China stocks.

China's short-term rates fell sharply amid abundant liquidity.

Gold advanced and reached fresh seven-week highs above $1490. Crude oil traded neutral to higher on lower US Crude inventory forecast.

Cryptocurrencies consolidated the downside. Bitcoin traded around $ 7,300 mark.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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