Major currency pairs showed minimal fluctuations early on Tuesday as investors brace for a series of important events later in the week. On the US economic calendar, the day will feature the release of October’s JOLTS Job Openings data and the RealClearMarkets/TIPP Economic Optimism Index for December. Additionally, several Federal Reserve (Fed) policymakers are scheduled to speak during the US trading session.
The US Dollar (USD) gained momentum at the start of the week amid a cautious market sentiment, with the USD Index closing in positive territory on Monday. On Tuesday morning, the index remained relatively steady around 106.50, while US stock index futures saw little movement.
EUR/USD Drops Amid Political Instability in France
The Euro (EUR) experienced a sharp decline on Monday, falling below the 1.0500 level and losing more than 0.7% against the US Dollar. Political uncertainty in France is weighing on the Euro, with French Finance Minister Antoine Armand stating that the country is at a crucial juncture and must avoid plunging into instability. The political situation in France is intensifying, with far-right and left-wing parties filing no-confidence motions against Prime Minister Michel Barnier, potentially signaling the collapse of the government later this week.
GBP/USD Faces Setback
The British Pound (GBP) dropped towards 1.2600 on Monday, snapping a three-day winning streak. The pair remains in a consolidation phase around 1.2650 as Tuesday’s European session progresses.
USD/JPY Rebounds Above 150.00
The USD/JPY pair showed a slight rebound on Tuesday, trading just above the 150.00 mark after closing nearly unchanged on the first trading day of the week.
AUD/USD Steady Amid China’s Policy Shift
The Australian Dollar (AUD) held steady above 0.6450 on Tuesday following a decline on Monday. China recently announced it had lifted all export restrictions on Australian meatworks, providing a boost to the Australian Dollar.
Gold Faces Volatility
Gold (XAU/USD) began the week on a negative note, dipping toward $2,620 before recovering a significant portion of its losses during the American session. By Tuesday, gold was trading modestly higher around $2,650, as market sentiment remained cautious.
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