Here is what you need to know on Tuesday, December 27:
Following the three-day weekend, the US Dollar struggles to find demand on Tuesday with the US Dollar Index trading in negative territory below 104.00 following a bearish gap at the opening. November Goods Trade Balance and October Housing Price Index data will be featured in the US economic docket later in the day. US stock index futures trade in positive territory and the 10-year US Treasury bond yield holds steady near above 3.75%.
Earlier in the day, China’s National Bureau of Statistics (NBS) said that they had revised the country’s estimate of 2021 gross domestic product (GDP) growth to 8.4% from 8.1% previously. On a concerning note, reports suggest that China's hospitals are overwhelmed with the number of confirmed coronavirus cases rapidly rising since the country took steps to ease restrictions. Meanwhile, Japan Prime Minister Fumio Kishida announced on Tuesday that they will be requiring travellers from China to quarantine for seven days if they test positive for COVID-19 and added that they will be placing limits on airlines' requests to increase flights to China.
Nevertheless, the relatively upbeat risk mood stays intact in the European morning, making it difficult for the safe haven US Dollar to stay resilient against its rivals. Ahead of the Christmas holiday, the US Bureau of Economic Analysis reported that the Core Personal Consumption Expenditures (PCE) Price Index rose by 0.2% on a monthly basis, brining the annual rate down to 4.7% from 5% in October. Both of these readings came in line with analysts' forecasts.
EUR/USD capitalized on the selling pressure surrounding the US Dollar and climbed above 1.0650 in the European morning on Tuesday.
After having fluctuated in a narrow range during the Asian trading hours, GBP/USD started to stretch higher and was last seen trading above 1.2100.
USD/JPY stays relatively quiet below 133.00 despite the US Dollar weakness. Earlier in the day, Bank of Japan (BOJ) Governor Haruhiko Kuroda said that the decision to tweak the yield curve control strategy was "absolutely no a first step" towards an exit from ultra-loose monetary policy, making it difficult for the Japanese Yen to find demand.
Gold price edges higher during the European trading hours and trades above $1,807 after having opened with a small bullish gap.
Bitcoin extends its sideways grind slightly below $17,000 early Tuesday. Ethereum struggles to find direction and moves up and down in a narrow channel at around $1,200.
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 above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.