This is what you need to know to trade today Tuesday, December 28:
After the Wall Street indices closed in record numbers on Monday, a sense of caution returned to financial markets this Tuesday. Once again, investors are assessing the risks of the covid variant of Ómicron on economic growth, despite strong sales for the US holiday season.
The Australian states of Victoria and Queensland reported record cases of covid, while the US Centers for Disease Control and Prevention (CDC) reduced the recommended isolation time for Americans with COVID-19 from 10 to 5 days amid the rapid spread of the new variant.
The latest regulatory tightening in China also dampened investor sentiment, as Asian equities traded mixed while index-linked futures S&P 500 they fell back from all-time highs.
The US dollar index it stopped selling and found support in a rally in yields on shorter maturity Treasuries. The two-year yield jumped to 0.758%, the highest level since early March 2020, amid mounting bets for a rate hike from the Fed in March, fueled by optimism of the recovery. Meanwhile, longer-term rates on Treasuries were flat on the downside.
The EUR/USD it is far from the lows, maintaining its range below 1.1350 after last week’s bounce.
The GBP/USD It is consolidating near five-week highs below 1.3450 amid easing of Omicron and Brexit fears. The UK government assured that there will be no further restrictions during the Christmas season. In addition, new post-Brexit fishing rules and the announcement of £ 75 million funding for British ports and processing facilities support the British pound.
The USD/JPY it is following the advance in yields, reaching their highest levels in five weeks, just shy of 115.00.
The bulls of the oro are trying again to break above the key $ 1814 zone amid the resurgence in buying, acceptance above the latter level is critical for a further rise.
The barrel of West Texas Intermediate (WTI) It is battling a powerful resistance from the 50 DMA just below $ 76 after the prior week’s rally gathered steam on Monday.
The Bitcoin it is breaking the recent bullish momentum, dropping below the $ 50,000 level.
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