Forex Today: Major pairs stuck in tight ranges on last day of 2021

Eren Sengezer FXStreet

Here is what you need to know on Friday, December 31:

Following Thursday's choppy market action, major pairs stay quiet as we head into 2022. There won't be any macroeconomic data releases on New Year's Eve but US stock markets will be open. The US bond markets will close early.

Earlier in the day, the data from China showed that the business activity in the private sector expanded at a modest pace in December. The NBS Manufacturing PMI inched higher to 50.3 from 50.1 in November and the Non-Manufacturing PMI rose to 52.7 from 52.3.

The S&P 500 and the Dow Jones Industrial Average both registered small losses on Thursday and US stocks futures are down between 0.15% and 0.12% in the early European session on Friday. The 10-year US Treasury bond yield is holding above 1.5% following Thursday's steep correction.

The number of confirmed coronavirus cases continues to rise at an unprecedented pace but the hospitalization rate remains relatively low, easing concerns over the potential negative impact on global economic activity.

EUR/USD gained traction in the early American session on Thursday but lost its momentum after rising above 1.1350 and closed in the negative territory. The pair is moving sideways slightly above 1.1300.

GBP/USD touched its highest level since late November at 1.3522 on Thursday and seems to have gone into a consolidation phase around 1.3500 on Friday.

USD/JPY lost its bullish momentum amid retreating US Treasury bond yield and trades in a tight range near 115.00 on Friday.

Gold registered strong daily gains after reclaiming $1,800 and looks to end the year on a firm footing. As of writing, XAU/USD was up modestly on the day at $1,818.

Bitcoin is moving up and down in a narrow range after dropping below $50,000 earlier in the week. Ethereum extends its sideways grind near $3,700 but it's losing 8% on a weekly basis.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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