EUR/USD is holding gains at around 1.0650 ahead of the European open. The pair capitalizes on a broad-based US Dollar weakness, as risk flows dominate on China’s further reopening moves. Holiday-thinned light trading will extend ahead of mid-tier US data.
GBP/USD is trading sideways around 1.2100 amid light trading, as the UK markets are closed in observance of Christmas Day. China-driven risk-on mood is helping the GBP/USD pair at the expense of the US Dollar.
USD/JPY is trading on the defensive heading into the early European morning, as the Japanese yen traders take it easy after a volatile last week. The downbeat tone around the pair could be partly due to a broad-based US Dollar weakness, fuelled by persisting risk flows and lower US Treasury bond yields. Reports that China is planning to scrap the quarantine rules for inbound travelers alongside further relaxation of restrictions boosted risk sentiment, weighing negatively on the safe-haven US Dollar.
AUD/USD pares intraday gains around 0.6750 during Tuesday’s sluggish morning in Europe. In doing so, the Aussie pair takes clues from the recently flashed downbeat China data. However, cautious optimism in the market joins the receding hawkish bias from the Federal Reserve (Fed) to keep the pair buyers hopeful.
NZD/USD bulls flirt with the 0.6300 round figure while posting a three-day winning streak early Tuesday. In doing so, the Kiwi pair cheers the broadly-softer US Dollar, as well as the risk-on mood. However, recently downbeat data from China joins the holiday mood to probe the bulls.
USD/CAD has witnessed a steep fall after surrendering the previous week’s low around 1.3560 in the early European session. The Loonie has dropped to near 1.3550 and is expected to display more weakness as the US Dollar Index (DXY) has faced immense pressure led by a decline in the United States Personal Consumption Expenditure (PCE) Price Index data released on Friday.
The USD/CHF pair has carry-forwarded its Friday’s topsy-turvy movement in a range of 0.9310-0.9330 in the early Asian session. The Swiss franc asset holds on at 0.9300 despite positive market sentiment in the FX universe. At the press time, the major sensed barricades while attempting to cross the critical hurdle of 0.9330.
Oil prices climbed for a fourth straight day on Thursday with U.S. crude, heating oil jet fuel stocks growing tighter just as a wintry blast hits the United States and travel is set to soar for its holiday season.
Gold price is building on the previous gains, keeping its sight on the multi-month top at $1,825 amid light trading on Tuesday. The United States Dollar (USD) extends its weakness, as risk flows dominate amid China’s continued shift from its zero-Covid policy.
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