US dollarThe dollar edged lower Tuesday, consolidating after recent gains as the safe haven rebounded from recent lows on the back of rising Treasury yields.

Despite today’s losses, the tone surrounding the greenback has changed over the last few days as the prospect of fiscal stimulus and hints that the Federal Reserve may start tapering its bond purchases by the end of the year has driven U.S. Treasury yields higher.

USD/JPY was down 0.1% at 104.14, EUR/USD rose 0.2% to 1.2166, after slipping to 1.2132 during the previous session for the first time since Dec. 21. GBP/USD climbed 0.4% to 1.3553.
Oil prices edged higher Tuesday, remaining supported by last week’s pledge by Saudi Arabia to voluntarily cut production by 1 million barrels per day as well as the expectation of additional U.S. fiscal support. Focus will now turn to the publication of reports concerning U.S. oil stockpiles from API later Tuesday.

Gold edged higher through the earlier session and was last seen hovering near the top end of its daily trading range, around the $1,860 region.

Traders will be keeping a wary eye on the release of the JOLTs job openings data for November, due out at 14:00 GMT, as it will provide a glimpse at what is happening in the labour market with respect to hiring, especially after Friday’s disappointing payrolls release.

Also, of interest will be several Federal Reserve speakers, starting with Atlanta Fed President Raphael Bostic. Investors will be interested of their views of the strength of the U.S. economy, given the rising uncertainty over the length of time the central bank will keep interest rates at rock bottom levels.