Eyes on FOMC Minutes as holiday mood sets in
The action in financial markets turns subdued early Tuesday as trading conditions remain thin heading into the New Year holiday. In the second half of the day, the US economic calendar will feature housing data and the Federal Reserve will release the minutes of the December policy meeting.
The data from the US showed on Monday that Pending Home Sales increased by 3.3% in November. Additionally, the Federal Reserve Bank of Dallas reported that the Dallas Fed Manufacturing Index edged lower to -10.9 in December from -10.4 in November. These figures failed to trigger a noticeable market reaction and the US Dollar (USD) Index held steady at around 98.00. The USD Index stays quiet in the European morning on Tuesday and continues to move sideways.
Following the record-setting rally, Gold staged a sharp correction on Monday and lost more than 4% on a daily basis. XAU/USD recovers on Tuesday but remains below $4,400.
Similarly, Silver (XAG/USD) fell about 9% on Monday after touching a all-time-high of $84 at the beginning of the week. The pair gains traction on Tuesday and climbs toward $75, rising more than 3% on the day.
EUR/USD failed to make a decisive move in either direction on Monday and closed the day virtually unchanged. The pair extends its sideways grind above 1.1750 in the European morning on Tuesday.
GBP/USD registered marginal gains on Monday but struggled to gather momentum. The pair holds steady at around 1.3500 to start the European session.
USD/JPY lost more than 0.3% on Monday as the hawkish tone seen in the Bank of Japan's Summary of Opinions supported the Japanese Yen. The pair holds steady at around 156.00 early Tuesday.
Source: FXstreet.com
