EUR/USD
EUR/USD gains ground on Tuesday, trading near 1.0410 during the Asian session after posting losses on the previous day. The EUR/USD pair’s rebound can be attributed to a subdued US Dollar following weaker Treasury yields.
GBP/USD
GBP/USD retraces its recent losses from the previous session, trading around 1.2550 during the Asian hours on Tuesday. This upside of the pair could be attributed to the subdued US Dollar amid weaker US Treasury yields.
USD/JPY
USD/JPY corkscrewed on Tuesday, backsliding seven-tenths of one percent and getting knocked back below the 157.00 handle as markets push back into the midrange ahead of the midweek New Year’s holiday closures. The year-end holiday session is in full swing, and broad-market volumes remain low.
AUD/USD
The Australian Dollar (AUD) remains tepid against the US Dollar (USD) following the release of mixed NBS Manufacturing Purchasing Managers’ Index (PMI) data from China on Tuesday. As close trade partners, any fluctuations in China’s economy tend to impact Australian markets.
NZD/USD
The NZD/USD pair trades with mild losses near 0.5635 amid thin trading during the early Asian session on Tuesday. Investors brace for China’s National Bureau of Statistics (NBS) Manufacturing and Non-Manufacturing Purchasing Managers’ Index (PMI) data for December, which are due later on Tuesday.
USD/CAD
The USD/CAD pair trades in negative territory around 1.4350 during the early European session on Tuesday. The recovery in crude oil prices lifts the commodity-linked Canadian Dollar (CAD) and creates a headwind for USD/CAD. However, the downside for the pair might be limited amid the rising bets that the Federal Reserve (Fed) will slow the pace of interest rate cuts in 2025. The markets are likely to be quiet ahead of the New Year holiday.
USD/CHF
The USD/CHF pair softens to near 0.9030, snapping the two-day winning streak during the early European session on Tuesday. The cautious mood and geopolitical risks could boost the safe-haven currency like the Swiss Franc (CHF). Trading conditions remain choppy ahead of the New Year holiday.
CRUDE OIL
Oil prices rose on Tuesday after data showed China’s manufacturing activity expanded in December, but they are on track to end lower for a second consecutive year due to demand concerns in top consuming countries.
GOLD
Gold prices are set to close the year with an impressive 27% gain, marking the strongest annual performance since 2010. The non-yielding metal receives downward pressure from the outlook of fewer Fed rate cuts in 2025. The safe-haven Gold remains backed by the prolonged Russia-Ukraine and Middle East conflicts.
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