Here is what you need to know on Monday, December 12:
Markets seem to have turned cautious at the beginning of the week with participants staying on the sidelines ahead of this week's eagerly-awaited central bank policy announcements and high-tier macroeconomic data releases. The US Dollar Index holds steady above 105.00 following last week's choppy action, US stock index futures trade flat in the European morning and the 10-year US Treasury bond yield stays calm above 3.5%. The European nor the US economic docket will not be featuring any data releases on Monday. There will be auctions for 10-year and 3-year US Treasury Notes later in the day.
Chinese officials announced earlier in the day that they will take the application used to track coronavirus cases offline later in the week. Additionally, Bloomberg reported that China may partially open borders with Hong Kong from next month, allowing people to travel freely heading into the Lunar New Year holidays. Nevertheless, the Shanghai Composite Index and Hong Kong's Hang Seng Index both remain on track to end the day in negative territory.
EUR/USD stays on the back foot early Monday but continues to fluctuate above 1.0500. The pair failed to make a decisive move in either direction last week and closed virtually unchanged.
GBP/USD edged lower during the European trading hours and dropped below 1.2250. The data published by the UK's Office for National Statistics (ONS) revealed on Monday that the Gross Domestic Product expanded by 0.5% on a monthly basis in October following September's 0.6% contraction. Although this reading came in much better than the market expectation of 0.1%, it failed to provide a boost to Pound Sterling. Other data from the UK showed Industrial Production remain unchanged in October while Manufacturing Production rose by 0.7%.
USD/JPY climbed above 137.00 earlier in the day but struggled to preserve its bullish momentum. The data from Japan showed on Monday that Machine Tool Orders contracted by 7.8% on a yearly basis in November and the annual Producer Price Index arrived at 9.3% in November, surpassing the market expectation of 8.9%.
Gold price advanced beyond $1,800 late Friday but started the new week under modest bearish pressure. XAU/USD was last seen trading in negative territory slightly below $1,790.
Bitcoin spent the weekend in a very narrow range and started to inch lower early Monday. BTC/USD was last seen trading slightly below $17,000. Ethereum fluctuates in the lower half of its two-week-old range at around $1,250.
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 bounces back, trades above 1.0860

EUR/USD bounced from a fresh weekly low of 1.0827, as the US Dollar lost steam following a weak ISM Manufacturing PMI report and words from Federal Reserve Chair Jerome Powell. Powell reiterated its hawkish message, dismissing potential rate cuts in the near future.
GBP/USD turns north ahead of the weekly close

GBP/USD recovered above 1.2650 in the American session on Friday. The US Dollar lost its temporal momentum and ends the weekly with a soft note amid soft local data. Hawkish comments from BoE officials underpinned the Pound this week.
Gold resumes advance and approaches record highs

Gold price (XAU/USD) quickly changed course after the US opening, trading above $2,050 a troy ounce. The US Dollar gave up intraday gains following the release of a worse.-than-anticipated IS Manufacturing PMI, indicating persistent weekends mid-Q4.
Solana likely to extend gains as DeFi airdrop season could boost user base

Solana ecosystem will see airdrops from projects like Jupiter, Marginfi, Drift, Zeta and Jito. Solana users are projected to increase between 30% and 80% from native token launches, according to Messari’s latest report. SOL price extends rally, yielding nearly 4% daily gains.
Weekly focus: Disinflation continues

This week, inflation came in below expectations in the euro area and the US. In the euro area, headline inflation fell much more than expected to 2.4% y/y (consensus: 2.7% y/y) in November from 2.9% in October.