Forex Today: Risk-aversion at the start of the week; cautious mood to last till Wednesday

What you need to know on Tuesday, December 14:

Major pairs seesawed between gains and losses in a risk-averse environment, with volatility subdued and majors confined to familiar levels, as market participants await central banks’ announcements. The US Federal Reserve will announce its monetary policy decision on Wednesday, while the Bank of England and the European Central Bank will do the same on Thursday.

Concerns rotate around how the ongoing Omicron outbreak may affect such decisions and global economic growth. Meanwhile, the UK reported the first death related to the Omicron variant.

The EUR/USD pair trades a handful of pips below the 1.1300 level, while the British Pound fell against the greenback towards the 1.3200 region. Commodity-linked currencies came under selling pressure as Wall Street edged lower, recovering modestly ahead of the close. Safe-haven CHF and JPY are little changed against the dollar on a daily basis, trimming losses in the last trading session of the day.

The yield on the 10-year US Treasury note peaked at 1.50%, but retreated to 1.41%, finishing the day near the latter.

Gold managed to advance, with spot trading around $1,787 a troy ounce, while crude oil prices were weighed by the poor performance of equities, and WTI ended the day at $71.00 a barrel.

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