Here’s what you need to know on Wednesday, December 22:

The greenback struggled to find demand on Tuesday amid a positive trend in risk sentiment. The rise in yields on US Treasuries, however, helped the dollar to limit its losses and the US dollar index appears to have entered a phase of consolidation around 96.50 at the start of Europe. Later today, the US Bureau of Economic Analysis will release its final revision of annualized GDP growth for the third quarter. The Conference Board’s December data on consumer confidence and November existing home sales will also appear in the U.S. economic record.

Despite the lack of positive developments around the Omicron variant, the main Wall Street indices managed to post solid gains on Tuesday, with investors seeing the latest drop as an opportunity to grab some bargains. The benchmark 10-year US Treasury bond yield moved closer to a touching 1.5% but fell slightly before settling to around 1.46% early Wednesday. US equity futures are trading flat, suggesting that the risk recovery has already lost momentum.

EUR / USD tested 1.1300 for the second day in a row on Tuesday but ended up closing the day virtually unchanged near 1.1280. Monthly data released by the European Commission showed consumer confidence deteriorated in the euro area, with the consumer confidence index falling to -8.3 (provisional data) in December from -6.8 in November . The pair is currently trading in negative territory around 1.1270.

GBP / USD is trading in a narrow channel around 1.3250 on Wednesday morning as investors showed little to no reaction to the latest data released from the UK. The Office for National Statistics said annualized GDP grew 6.8% in the third quarter, beating market expectations by 6.6%. In addition, total business investment in the UK contracted 2.5% on a quarterly basis in the third quarter.

USD / JPY capitalized on rising US Treasury bond yields and hit a one-week high above 114.00. The pair consolidates Tuesday’s gains around 114.20.

Gold lost traction after testing $ 1,800 on Tuesday and fell back to $ 1,790, under pressure from recovering US Treasury bond yields. As it stands, XAU / USD might have a hard time attracting buyers unless it converts $ 1,800 into support.

USD / CAD closed slightly lower on Tuesday as bullish Canadian data, which shows retail sales rose 1.6% in October, helped the loonie remain resilient against its US counterpart. The pair remains calm around 1.2900 at the start of the European session.

Bitcoin posted decisive gains on Tuesday and continues to climb towards the critical $ 50,000 mark. Ethereum closed in the green for the second straight day on Tuesday and appears to be above $ 4,000.