- DXY struggles to portray the aftershocks of downbeat data.
- Holidays at various Asian, European bourses limit the market’s reaction.
- China spreads worrisome headlines, dims prospects of healthy future relations with the US.
The US Dollar Index (DXY) clings to 97.70 amid the initial trading session on Tuesday. The greenback gauge fails to react to the Chinese headlines amid an absence of traders at various markets surrounding Asia, the EU and the UK.
China’s Global Times has been spreading worrisome headlines concerning the US interference in issues surrounding Taiwan, Hong Kong and Xinjiang since the early Asian session. On the other hand, the Financial Times also came out with the news that the US is pushing the UK to avoid facilitating China’s Huawei when it comes to the 5G.
However, traders take it as kicking up the dust with a mildly heavy risk tone portrayed by 1.92% mark of the US 10-year treasury yields.
The greenback gauge seems in a holiday mood as it failed to depict the downbeat Durable Goods Orders and housing market releases published the previous day.
Traders may now concentrate on further trade/political headlines, coupled with the US Richmond Fed Manufacturing Index for December, expected +9 versus -1 prior, for fresh impulse.
It’s worth mentioning that the overall market moves are likely to remain silent amid the year-end holiday season at major global trading centers.
Technical Analysis
Doji on the daily chart, coupled with a failure to cross 200-day Simple Moving Average (SMA), increase the odds of the gauge’s decline.
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