Here is what you need to know on Tuesday, December 21:
The greenback limited its losses against its major rivals amid rising US Treasury bond yields late Monday and seems to have gone into a consolidation phase early Tuesday with the US Dollar Index moving sideways around 96.50. November Retail Sales data from Canada and the European Commission's Consumer Confidence Index data for the euro area will be looked upon for fresh impetus later in the day.
Although Wall Street's main indexes closed deep in the negative territory on Monday, major Asian equity indexes staged an impressive recovery on Tuesday. Additionally, US stock index futures are up around 1% during the European trading hours, pointing to improving risk sentiment. Meanwhile, the 10-year US Treasury bond yield, which rose 1.5% on Monday, is posting small daily gains at 1.43%, helping the dollar stay resilient against its peers.
Meanwhile, the US has reported the first Omicron-related death on Monday and the Center for Disease Control and Prevention (CDC) noted that the new variant was accounting for nearly three-quarters of confirmed COVID cases. In the UK, Prime Minister Boris Johnson said that they are looking at all options to slow the spread of the virus and added they are not ruling any measures out.
EUR/USD registered modest daily gains on Monday and continues to edge higher toward 1.1300 on Tuesday. Despite this recent rebound, the pair is struggling to make a decisive move and continues to fluctuate within a two-week-old range.
GBP/USD failed to capitalize on the dollar weakness on Monday and stays under modest bearish pressure near 1.3200.
AUD/USD remains on the back foot around 0.7100 on Tuesday. Earlier in the day, the Reserve Bank of Australia noted in its meeting minutes they are committed to maintaining highly supportive monetary conditions.
USD/JPY closed flat on Monday as recovering US Treasury bond yields limited the pair's upside despite the risk-averse market environment. On Tuesday, the pair is posting small daily gains below 114.00
Gold failed to hold above $1,800 and closed near $1,790. XAU/USD is moving sideways in a relatively tight range around that level.
Bitcoin has regained its traction and started to move higher toward $50,000. Ethereum is trading in the green a little 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.
Recommended content
Editors’ Picks
EUR/USD holds steady above 1.0750 on improving risk mood
EUR/USD continues to trade above 1.0750 on Monday. The data from Germany showed that IFO Business Climate Index improved to 93.3 in March from 91.1 in February, helping the Euro stay resilient against the US Dollar. The risk-positive atmosphere further supports the pair.
GBP/USD regains 1.2250, Bailey speech eyed
GBP/USD clings to modest gains above 1.2250 on improving risk mood on Monday. The US Dollar struggles to gather strength despite rising US Treasury bond yields. In the absence of high-impact data releases, investors will pay close attention to BOE Governor Bailey's speech.
Gold extends slide to $1,950 as US yields rebound
Gold price has extended its daily slide to the $1,950 area in the European session. Amid easing fears over a global banking crisis, the benchmark 10-year US Treasury bond yield rebounds toward 3.5% on Monday, weighing heavily on XAU/USD.
Four reasons why SUSHI holders will have a bullish week despite SEC's move
SushiSwap price undid the early March gains in the last week after the SEC subpoenaed the platform’s head chef Jared Grey. As a result of this announcement, the token collapsed by roughly 18%.
Alibaba (BABA) edges higher after Jack Ma returns to China for AI talk
BABA shareholders begin the week with a glimmer of hope after founder Jack Ma was seen visiting China after spending more than one year abroad. The report originally led to Alibaba's shares in Hong Kong rising 4% before subsiding.