Mixed action ahead of US data, Fedspeak

Major currency pairs are fluctuating in tight ranges on Tuesday as investors gear up for this week’s key events. Later in the day, the US economic calendar will feature the JOLTS Job Openings data for October and RealClearMarkets/TIPP Economic Optimism Index for December.

During American trading hours, several Federal Reserve policymakers are scheduled to deliver speeches.

The US Dollar benefited from the cautious market mood at the start of the week, with the DXY Dollar Index closing in positive territory on Monday. In European trading on Tuesday, the index remained relatively quiet at around 106.50, while US stock index futures traded little changed.

The EURUSD dropped below 1.0500 on Monday and lost more than 0.7% on the day.

Political jitters in France seem to be weighing on the Euro. French Finance Minister Antoine Armand said on Tuesday that the “country is at a turning point,” adding that they have a responsibility not to plunge the country “into uncertainty.”

“The French government is all but certain to collapse later this week after far-right and left-wing parties submitted no-confidence motions on Monday against Prime Minister Michel Barnier,” Reuters reported.

GBPUSD fell toward 1.2600 and snapped a three-day winning streak on Monday. The pair remains in a consolidation phase at around 1.2650 in European trading on Tuesday.

USDJPY staged a rebound to trade slightly above 150.00 on Tuesday after closing the first trading day of the week virtually unchanged.

AUDUSD holds steady above 0.6450, following Monday’s decline. China has reportedly announced that it lifted all restrictions on exports from Australian meat works.

Gold started the week on the back foot and dropped toward $2,620 before erasing a large portion of its daily losses in the American session. XAUUSD was last seen trading modestly higher on the day at around $2,650.

(Source: OANDA)