Market Information

This week's highlight will be the release of the minutes of the Federal Reserve's (Fed) December meeting, in which the central bank decided to cut its benchmark rate by 25 basis points and signal another rate cut in 2026.

GBP/USD trades around 1.3490 on Monday, down 0.10% on the day at the time of writing. The pair is consolidating after recent moves, as investors remain cautious ahead of year-end and the holiday period, which typically sees thinner liquidity due to the New Year holiday.

US equities kicked off the final trading week of 2025 with a bit of a whimper, despite holding close to record highs.

The Canadian Dollar (CAD) struggled to find meaningful momentum in either direction against the US Dollar (USD) on Monday, kicking off the last trading week of 2025 on a directionless note.

Gold (XAU/USD) drops sharply on Monday, down 4.50% and trading near $4,330 at the time of writing, after hitting a fresh all-time high at the end of last week.

EUR/JPY trades lower and hovers around 183.80 on Monday at the time of writing.

USD/CAD rebounds toward 1.3700 and is up around 0.20% on the day on Monday. After trading near a five-month low around 1.3640 late last week, the pair benefits from a modest return of demand for the US Dollar (USD) amid thin liquidity at the start of a holiday-shortened week.

A previous EUR/GBP recovery attempt seen on Monday has been short-lived, and the pair found sellers ahead of the 0.8740 area before retreating sharply during the European trading session. The Euro is trading at 0.8710 at the time of writing, only a few pips above the two-month lows, at 0.8705.

The USD/CHF pair trades 0.18% higher to near 0.7915 during the European trading session on Monday. The Swiss Franc pair rises after gaining ground near 0.7860, the lowest low seen in over three months.

EUR/GBP trades around 0.8715 on Monday at the time of writing, slightly lower for the day. The cross pauses following the previous session’s gains, as the Pound Sterling (GBP) benefits from a cautious yet relatively firm tone surrounding the monetary policy outlook of the Bank of England (BoE).

The US Dollar is ticking lower against a moderately firmer Japanese Yen on Monday, yet with downside attempts contained above 156.00.

The AUD/USD pair retraces to near 0.6700 during the European trading session on Monday from its over-a-year high of 0.6727 posted earlier in the day.

Gold (XAU/USD) has dropped about $80 from the all-time highs at $4,550 area hit last week to session lows at $4,445 on Monday, weighed by hopes of a peace deal in Ukraine and a moderate recovery of the US Dollar, amid thin year-end trading.Precious metals retreated sharply on Monday, after US Presid

NZD/USD trades around 0.5810 on Monday at the time of writing, down 0.40% on the day, marking a third consecutive day of losses.

Silver prices (XAG/USD) fell on Monday, according to FXStreet data. Silver trades at $75.07 per troy ounce, down 4.29% from the $78.44 it cost on Friday.

EUR/USD is trading lower for the fourth consecutive day on Monday, changing hands near 1.1770 after having peaked at levels right above 1.1800 last week, as the US Dollar (USD) recovers slightly in a calm trading session.

Silver (XAG/USD) has lost more than $10 since hitting a fresh record high near $86.00 on Monday’s early trading. The precious metal has retreated to levels in the $74.00 area at the time of writing, weighed by comments by US President Trump about the chances of a peace deal in Ukraine.

West Texas Intermediate (WTI) Oil price rebounds after registering 2.5% losses in the previous session, trading around $57.30 per barrel during the European hours on Monday. Crude Oil prices rise as investors weigh the risk of a global supply glut amid potential delays to a Ukraine peace deal.

The USD/CAD pair trades 0.18% higher to near 1.3700 during the European trading session on Monday. The Loonie pair gains as the Canadian Dollar (CAD) is under pressure amid thin liquidity in markets at the start of a holiday-shortened week.

The Pound Sterling (GBP) trades calmly against its major peers at the start of the last week of 2025, holding steady around 1.3500 against the US Dollar (USD). The British currency remains broadly firm as investors expect the Bank of England (BoE) to follow a moderate monetary easing cycle in 2026.

The Yen is trimming recent losses against its main peers on Monday, which has triggered a nearly 100-pip reversal on the GBP/JPY. The pair is trading near 210.50 at the time of writing after pulling back from session highs at 211.43.

USD/JPY retraces its recent gains registered in the previous session, trading around 156.10 during the European hours on Monday. On the daily chart, technical analysis indicates the 14-day Relative Strength Index (RSI) sitting at 52.80 (neutral) after easing from recent readings.

EUR/GBP inches lower after registering gains in the previous session, trading around 0.8720 during the early European hours on Monday. The currency cross depreciates as the Pound Sterling (GBP) gains on a cautious tone surrounding the Bank of England’s (BoE) policy outlook.

The Indian Rupee (INR) opens mildly lower against the US Dollar (USD) at the start of the last week of 2025.

The EUR/JPY cross attracts some sellers to around 183.80 during the early European session on Monday. The Japanese Yen (JPY) strengthens against the Euro (EUR) as the Bank of Japan’s (BoJ) Summary of Opinions from the December policy meeting reinforced expectations of continued tightening in 2026. 

Here is what you need to know on Monday, December 29:

The USD/CHF pair edges up to near 0.7900 during the late Asian trading session on Monday. The Swiss Franc pair trades mildly higher as the US Dollar (USD) ticks up, with the US Dollar Index (DXY) rising to near 98.15.

The GBP/USD pair loses momentum near 1.3485 during the early European session on Monday, pressured by renewed US Dollar (USD) demand. The potential downside for a major pair might be limited, as the Bank of England (BoE) guided that monetary policy will remain on a gradual downward path.

EUR/USD loses ground for the fourth consecutive session, trading around 1.1760 during the Asian hours on Monday. On the daily chart, technical analysis indicates a weakening bullish bias, as the pair tests to break below the lower boundary of the ascending channel pattern.

NZD/USD remains subdued for the third successive session, trading around 0.5830 during the Asian hours on Monday. The pair edges lower as the US Dollar (USD) recovers daily losses on technical grounds.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a flat note near 98.00 during the early European trading hours on Monday.

Gold prices fell in India on Monday, according to data compiled by FXStreet.

The Australian Dollar (AUD) rises against the US Dollar (USD), reaching a 14-month high of 0.6727 on Monday. The AUD/USD pair strengthens as the Aussie Dollar finds support amid growing expectations of interest rate hikes from the Reserve Bank of Australia (RBA).

Gold price (XAU/USD) retreats from a record high near $4,550 during the Asian trading hours on Monday as traders book some profits ahead of holidays. A renewed US Dollar (USD) could also weigh on the precious metal, as it makes Gold more expensive for non-US buyers, pressuring prices.

USD/CAD depreciates for the second successive session, trading around 1.3660 during the Asian hours on Monday.

Silver price (XAG/USD) retraces to near $75.00 in the Asian trading session on Monday from its all-time high of $84.03 posted in opening trading hours.

USD/JPY loses ground after registering modest gains in the previous session, trading around 156.20 during the Asian hours on Monday.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $57.10 during the early Asian trading hours on Monday. The WTI price edges higher amid prospects for improved Chinese demand.

GBP/USD gains after a gap-down open, trading around 1.3510 during the Asian hours on Monday. The pair gains ground as the US Dollar (USD) faces challenges, which could be attributed to growing expectations of two more rate cuts by the Federal Reserve (Fed) in 2026.

US President Donald Trump said that he made “a lot of progress” in talks with Ukrainian President Volodymyr Zelenskiy over a possible peace deal, Bloomberg reported on Sunday.

China signaled a more proactive fiscal stance in 2026, indicating sustained government support to drive growth in a challenging external environment, Bloomberg reported on Sunday.

The Bank of Japan (BoJ) published the Summary of Opinions from the December monetary policy meeting, with the key findings noted below.   

The EUR/USD pair trades in positive territory around 1.1775 during the early Asian session on Monday. The prospect of a US Federal Reserve (Fed) rate cut in 2026 weighs on the US Dollar (USD) against the Euro (EUR).

The Canadian Dollar (CAD) holds modest gains against the US Dollar (USD) on Wednesday, even as the Greenback trades firm amid limited movement as markets drift into holiday mode. At the time of writing, USD/CAD is trading around 1.3675, hovering near its lowest level since July 25.

Gold (XAU/USD) trades on the back foot on Wednesday after surging to a fresh all-time high near $4,526 earlier in the day. Volatility picked up amid thin holiday liquidity ahead of Christmas, encouraging mild profit-taking at elevated levels.

The British Pound (GBP) softens against the US Dollar (USD) on Wednesday, with the Greenback finding mild support amid reduced liquidity during the shortened US holiday session.

Silver (XAG/USD) trades around $72.05 on Wednesday at the time of writing, up 0.70% on the day. The white metal extends its bullish momentum for a fourth straight day and reached a fresh all-time high at $72.71 earlier in the day, highlighting sustained investor appetite for precious metals.

West Texas Intermediate (WTI) Crude Oil trades little changed on Wednesday as markets slip into holiday mode, with prices hovering near two-week highs amid thin liquidity.

There were 214,000 Initial Jobless Claims in the week ending December 20, a decrease of 10,000 from the previous week's unrevised level, the US Department of Labor (DOL) reported on Wednesday. This reading came in better than the market expectation of 223,000.

The British Pound (GBP) trades slightly lower against the Japanese Yen (JPY) on Wednesday, though thin holiday trading conditions are keeping price action contained within a tight range.