This is what you need to know to trade today Tuesday, December 21:
The US dollar capped its losses against its main rivals amid rising Treasury yields late Monday and appears to have entered a consolidation phase early Tuesday morning with the US Dollar DXY index moving sideways around from 96.50. November Canadian retail sales data and European Commission consumer confidence index data for the euro zone could generate further momentum later in the day.
Although the major Wall Street indices closed negative on Monday, the major Asian stock indices staged an impressive rally on Tuesday. Furthermore, US stock index futures have risen around 1% at the start of the European session, pointing to an improvement in risk sentiment. Meanwhile, the 10-year US Treasury yield, which rose 1.5% on Monday, posted small daily gains of 1.43%, helping the dollar remain resilient against major currencies.
Meanwhile, the United States has reported the first death related to Omicron 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 they are studying all options to curb the spread of the virus, adding that they are not ruling out any measures.
The EUR/USD posted modest daily gains on Monday and continues to climb toward 1.1300 on Tuesday. Despite this recent rebound, the parr is struggling to make a decisive move and continues to fluctuate within a two-week-old range.
The GBP/USD It was unable to capitalize on the weak dollar on Monday and remains under modest downward pressure near 1.3200.
The AUD/USD remains defensive around 0.7100 on Tuesday. Earlier in the day, the Reserve Bank of Australia noted in its meeting minutes that they are committed to maintaining highly favorable monetary conditions.
The USD/JPY it closed flat on Monday as the recovery in US Treasury yields limited the pair’s rally despite risk-off sentiment. On Tuesday, the pair is posting small daily gains below 114.00
The oro it did not hold above $ 1,800 and closed near $ 1,790. The XAU / USD is moving in a relatively tight range around that level.
The Bitcoin It has regained its traction and started moving higher towards $ 50,000. The Ethereum it is trading positive just above $ 4,000.
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