Market Roundup
•Gold set for best annual gain since 1979
•Silver to notch best ever yearly gain
• Average Brent, WTI 2025 prices lowest since 2020
•Brent set to post longest annual losing streak ever
Looking Ahead Economic Data (GMT)
•No Data Ahead
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Forecast
•No Events Ahead
Currency Forecast
EUR/USD : The euro traded flat in Wednesday trading, but remains on track to close 2025 with gains of around 13.5%, marking a strong annual performance for the single currency despite periods of heightened volatility and shifting rate expectations. Near-term focus turns to the U.S. initial jobless claims data due later on Wednesday, with a Reuters poll consensus of 220K. The release will be watched for confirmation that U.S. labor market conditions are cooling gradually rather than deteriorating sharply, a key consideration for Federal Reserve policy. Minutes from the Federal Reserve’s December meeting highlighted a notable degree of internal debate, with policymakers discussing scenarios that would justify both looser and tighter monetary policy. Immediate resistance can be seen at 1.1793(23.6%fib), an upside break can trigger rise towards 1.1828(Higher BB).On the downside, immediate support is seen at 1.1731(38.2%fib), a break below could take the pair towards 1.1680(50%fib).
GBP/USD: Sterling traded flat against the dollar on Wednesday as markets paused ahead of the year-end holiday period. On the macro front, minutes from the Federal Reserve’s December meeting have added pressure to the pair. The minutes revealed deep divisions among policymakers, undermining confidence in a clear or imminent easing path. Notably, even some officials who ultimately supported a rate cut acknowledged that the decision was finely balanced, highlighting ongoing uncertainty around inflation and growth risks. Downside in sterling may be limited by relatively firmer UK economic optimism, particularly compared with parts of the euro area, helping to cushion dips during thin Asian liquidity. Immediate resistance can be seen at 1.3499(23.6%fib), an upside break can trigger rise towards 1.3529(Higher BB).On the downside, immediate support is seen at 1.3405 (38.2%fib), a break below could take the pair towards 1.3338(50%fib).
AUD/USD: The Australian dollar dipped on Wednesday as greenback got a bit of a boost after minutes of the Fed's December meeting showed deep divisions among policymakers as they cut rates earlier this month.The U.S. Federal Reserve agreed to cut interest rates at its December meeting only after an intense and finely balanced debate over the risks facing the U.S. economy, according to minutes from the latest two-day policy session. According to minutes released Tuesday, even some policymakers who backed the rate cut acknowledged the decision was finely balanced, noting they could have supported leaving the target range unchanged given the range of risks facing the U.S. economy.In economic projections released after the December 9–10 meeting, six officials opposed a rate cut outright, with two of them dissenting as voting members of the Federal Open Market Committee. Immediate resistance can be seen at 0.6695(23.6%fib), an upside break can trigger rise towards 0.6726(Higher BB).On the downside, immediate support is seen at 0.6654(Daily low), a break below could take the pair towards 0.6609(38.2%fib)
USD/JPY: The U.S. dollar edged higher on Wednesday but gains were limited as liquidiy remained thin investors wind down the final trading sessions of 2025. Liquidity remains thin and price action subdued, reflecting widespread position-squaring and the absence of fresh catalysts.The close of the year caps a highly volatile and challenging period for the Japanese yen, which underperformed most major peers despite intermittent bouts of safe-haven demand and sporadic official rhetoric.Looking into 2026, the focus will shift squarely to diverging policy expectations between the Federal Reserve and the Bank of Japan, as well as Japan’s fiscal policy stance, including the scope and timing of any additional stimulus measures. Japanese markets are closed for the rest of the week, and with most markets closed on Thursday for the New Year's Day holiday, volumes are likely to be thin and moves muted. Immediate resistance can be seen at 157.80(23.6%fib) an upside break can trigger rise towards 158.00(Psychological level) .On the downside, immediate support is seen at 155.91 (SMA 20) a break below could take the pair towards 155.61 (38.2%fib).
Equities Recap
Asian stocks drifted on the final trading day of a year in which investors largely shrugged off tariff-related uncertainty and piled into AI chip stocks.
China’s A50 down 0.64%, Japan’s Nikkei 225 was down by 0.37% ,South Korea’s KOSPI was down at 0.15%
Commodities Recap
Oil prices were little changed on Wednesday but are set to fall more than 15%for 2025, as supply outpaced demand in a year marked by wars, higher tariffs and OPEC+ output and sanctions on Russia, Iran and Venezuela.
Brent crude futures , down nearly 18% - the most substantial annual percentage decline since 2020 - are on track for a third straight year of losses, their longest-ever losing streak. The March contract, which expires on Wednesday, rose 11 cents to $61.44 a barrel at 0451 GMT.
Gold prices held steady on Wednesday, maintaining their momentum from earlier gains. The metal is on course to record its strongest annual performance in over four decades, reflecting sustained investor demand amid economic uncertainty.
Spot gold was steady at $4,345.75 per ounce as of 0404 GMT after hitting a record high of $4,549.71 on Friday.
U.S. gold futures for February delivery lost 0.5% to $4,365.0/oz.
