Here is what you need to know on Tuesday, December 14:

The dollar preserves its strength against its major rivals on Tuesday with the US Dollar Index edging higher toward mid-96.00s after gaining 0.33% on Monday. Ahead of this week’s critical central bank meetings, the risk-averse market environment seems to be helping the greenback find demand. Later in the day, October Industrial Production data from the euro area and November Producer Price Index (PPI) from the US will be looked upon for fresh impetus. Investors will keep a close eye on fresh developments surrounding the coronavirus Omicron variant as well.

According to the latest reports, at least 20 manufacturing companies in China’s Zheijang provide have shut down their operations due to the spread of the virus. The UK Health Agency reported that omicron infections were running at 200,000 a day and the number of confirmed infections in Australia’s largest state, New South Wales, reached its highest level in more than two months. Reflecting the sour market mood, Wall Street’s main indexes closed deep in the negative territory, Shanghai Composite is down 0.55% and Nikkei 225 fell 0.73%. In the early European session on Tuesday, US stock index futures are trading flat. 

EUR/USD closed below 1.1300 on Monday and stays relatively quiet around 1.1270 early Tuesday. 

GBP/USD holds steady around 1.3200. The data published by the UK’s Office for National Statistics revealed on Tuesday that the ILO Unemployment Rate declined to 4.2% in October as expected.

USD/JPY clings to small gains above 113.50. Reuters reported on Tuesday that the Bank of Japan (BoJ) has offered to inject a total of 11 trillion yen into markets to drive down interest rates.

Gold continues to fluctuate within a narrow band below $1,800 as investors refrain from making large bets ahead of the Fed’s policy announcements.

AUD/USD dropped below 0.7100 during the Asian trading hours for the first time in a week. The National Australia Bank’s Business Confidence Index slumped to 12 in November from 20 in October.

USD/CAD consolidates Monday’s gains around 1.2800. The Bank of Canada’s Policy Framework Review revealed on Monday that the bank concerns over inflation are heightened to the upside “much more than usual.”

Bitcoin fell more than 6% on Monday after failing to break above $50,000 and trades flat around $46,700 early Tuesday. Ethereum stays under bearish pressure and continues to push lower toward the multi-week lows it set at $3,575 earlier in the month. 

This article was originally published by the original article here.