Forex Today: Investors on edge as focus shifts to US CPI

Here is what you need to know on Tuesday, December 13:

Following Monday's choppy action, financial markets remain cautious early Tuesday as the focus shifts to November Consumer Price Index (CPI) data from the US. The US Dollar Index stays quiet below 105.00 and the 10-year US Treasury bond yield moves sideways at around 3.6% after having registered modest gains on Monday. Ahead of the US inflation report, ZEW sentiment data for Germany and the Eurozone will also be looked upon for fresh impetus. Meanwhile, US stock index futures trade flat in the European morning.

US Inflation Cheat Sheet: Five scenarios for Core CPI and the Dollar's explosive reaction.

The data published by the UK's Office for National Statistics revealed earlier in the day that the ILO Unemployment Rate edged higher to 3.7% as expected in three months to October from 3.6% previously. The Average Earnings Including Bonus rose by 6.1% in the same period, compared to the market expectation of 6.2%. These figures, however, failed to trigger a noticeable market reaction and GBP/USD was last seen clinging to modest daily gains while trading at around 1.2300.

During the Asian trading hours, the National Australia Bank reported that the Business Conditions Index declined to 20 in November from 22 in October and the Business Confidence Index worsened to -4 from 0, missing analysts' estimate of 5 by a wide margin. AUD/USD declined below 0.6750 after the data but managed to stage a rebound toward 0.6770 in the early European session.

EUR/USD failed to make a decisive move in either direction and closed the day flat. The pair edged higher early Tuesday and trades in positive territory near 1.0550. Germany's Destatis reported that the annual CPI stood at 10% in November, matching the flash estimate and the market expectations.

USD/JPY took advantage of rising US T-bond yields on Tuesday and registered its highest daily close in nearly two weeks at 137.66. The pair was last seen moving up and down in a tight range near that level. On Wednesday, Machinery Orders and Tankan Large Manufacturing Index data will be featured in the Japanese economic calendar.

With the 10-year US T-bond yield gaining nearly 1% on Monday, Gold price turned south and dropped below $1,780. XAU/USD managed to regain its traction early Tuesday and started to edge higher toward $1,790.

US November CPI Preview: Gold is the asset to watch.

Bitcoin closed modestly higher on Monday but failed to gather bullish momentum. BTC/USD declines toward $17,000 early Tuesday. Ethereum is losing more than 1% so fat on the day, trading near $1,250.

Samuel Bankman-Fried arrested, charged by the US Government with money laundering, wire and securities fraud.