Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
Europe EV Demand Surges as Fuel Prices Rise Amid Iran Conflict 
Oil Prices Drop as U.S.-Iran Peace Deal Eases Supply Concerns 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
US Stock Futures Slip After Wall Street Rally Fueled by US-Iran Deal and Chipmaker Surge 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
Major currencies traded within narrow ranges on Tuesday as subdued market conditions persisted amid thin year-end trading volumes. With many investors already sidelined ahead of the New Year holiday, activity across global foreign exchange markets remained muted, leaving currencies largely directionless while traders waited for key signals from the U.S. Federal Reserve.
By early Tuesday, the U.S. Dollar Index was little changed against a basket of major currencies, reflecting the cautious tone dominating markets. U.S. Dollar Index futures edged slightly lower, underscoring the lack of conviction among traders. In individual currency pairs, the Japanese yen strengthened modestly, with USD/JPY slipping marginally, while the British pound saw a small uptick against the dollar. The euro remained flat, highlighting the overall lack of momentum across major forex pairs.
Investor attention was firmly focused on the upcoming release of minutes from the Federal Reserve’s December policy meeting. These minutes are expected to provide deeper insight into the central bank’s thinking following its recent interest rate cut, as well as offer clues about the future direction of U.S. monetary policy heading into 2026. Market participants are particularly interested in whether policymakers expressed differing views on how aggressively rates should be eased further.
As inflation shows signs of cooling, expectations of additional Federal Reserve rate cuts in 2026 have become a major theme in currency markets. Traders have increasingly priced in the likelihood of multiple cuts next year, a shift that has weighed on the U.S. dollar in recent weeks and occasionally supported emerging market and Asian currencies. However, lingering uncertainty around the timing, scale, and pace of any future easing has kept investors cautious.
With liquidity expected to remain low until after the holiday period, many analysts anticipate continued range-bound trading in the near term. Until clearer guidance emerges from the Federal Reserve and broader macroeconomic signals improve, forex markets are likely to remain subdued, with traders prioritizing risk management over aggressive positioning.
