Forex Today: Pre-Xmas quiet trading seeps in alongside US-China trade optimism, US data eyed

Dhwani Mehta FXStreet

Here is what you need to know on Monday, December 23:

Mixed market sentiment amid fresh trade optimism, geopolitical headlines and pre-Xmas slowing volumes kept the US dollar broadly subdued, off the two-week tops.

After US President Trump said over the weekend that phase one of the trade deal with China would be signed “very shortly”, China said that it will lower import tariffs on over 850 products from Jan. 1, including frozen pork and frozen avocado.

China’s President Xi accused the US of interfering in its internal affairs during a phone with Trump. The US Treasury yields posted small loses while Wall Street futures traded on the front foot. Asian equities were a mixed bag amid strong US data and trade deal hopes.

Across the G10 fx space, AUD/USD was the strongest and reached fresh six-day highs above 0.6900 while the Canadian dollar was the main laggard, with USD/CAD firmer around 1.3160.

Among the European currencies, EUR/USD traded better bid just under 1.1100. Cable regained the 1.30 handle but rising Hard Brexit fears kept a lid on the upside.

Gold advanced above $ 1480. Crude oil traded neutral to weaker on reports that Kuwait and Saudi Arabia are closing on a deal to renew oil output along the border.

Cryptocurrencies stalled their weekend’s upbeat momentum. Bitcoin held above $ 7,500 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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