Here is what you need to know on Monday, December 27: Major currency pairs continue to fluctuate in extremely tight ranges to
Here is what you need to know on Monday, December 27:
Major currency pairs continue to fluctuate in extremely tight ranges to start the last week of the year as trading conditions remain thin. The only data featured in the US economic docket will be the Federal Reserve Bank of Dallas’ Texas Manufacturing Survey for December but investors are unlikely to show any attention to this report.
The US Dollar Index, which tracks the greenback’s performance against a basket of six rivals, is holding steady above 96.00 after losing more than 0.6% last week. The 10-year US Treasury bond yield is posting small daily losses but stays within a touching distance of 1.5%. Meanwhile, the US stock index futures trade flat in the early European session, failing to provide a hint on risk sentiment.
Following last week’s rebound, EUR/USD seems to have settled above 1.1300 on Monday and it would be surprising to see the pair make a decisive move in either direction.
GBP/USD gained more than 100 pips and has gone into a consolidation phase around 1.3400. Over the weekend, the UK reported a daily record of more than 100,000 new coronavirus cases but British Prime Minister Boris Johnson dismissed additional restrictions until after New Year.
USD/JPY capitalized on the risk-positive market environment and closed the third straight week in the positive territory. Currently, the pair is moving sideways around 114.50.
After rising above the 200-day SMA on Monday, gold settled above $1,800 and spent the remainder of the week in a narrow band. At the beginning of the new week, the yellow metal is staying quiet around $1,810.
The barrel of West Texas Intermediate (WTI) gained nearly 5% and last week on easing concerns over a dismal demand outlook. On Monday, WTI is trading in the negative territory below $73.
Bitcoin stayed relatively quiet over the weekend and extends its sideways grind above $50,000 early Monday. Ethereum fluctuates around $4,000 for the fourth straight day.
www.fxstreet.com