China's gold reserves reached 74.15 million troy ounces in December, marking the 14th consecutive monthly increase and valued at $319.45 billion, up from $310.65 billion in November. This persistent accumulation, which began in November 2024, reflects China's strategic diversification away from USD-denominated assets, potentially weighing on USD/CNY. The People's Bank of China's gold buying spree has been instrumental in supporting global gold prices while simultaneously reducing reliance on US dollar reserves. This trend suggests continued yuan strength against the dollar as Beijing signals confidence in alternative reserve assets. Technical indicators show USD/CNY testing support at 7.2500, with further downside possible if China maintains its gold accumulation pace. The move aligns with broader de-dollarization efforts among major economies, potentially limiting dollar strength in Asian trading sessions.
USDCNY
Sentiment:
Negative
Source: Finnhub
USD pairs face potential volatility as the US Supreme Court schedules Friday as a decision day, with markets anticipating a ruling on tariff-related cases. The expedited hearing timeline suggests an imminent decision that could significantly impact trade policy and dollar strength. Traders are positioning defensively across major USD pairs, with implied volatility rising in EUR/USD, USD/JPY, and USD/CNH options markets. The ruling could affect US trade relations and potentially influence Federal Reserve policy considerations if tariffs impact inflation expectations. Technical levels show EUR/USD consolidating near 1.0500, USD/JPY holding above 157.00, while USD/CNH remains sensitive given China trade implications. Market participants should prepare for heightened volatility and potential gaps in USD pairs following the announcement. Risk management strategies including wider stops and reduced position sizes are advisable ahead of this high-impact event.
EURUSD
USDJPY
USDCNH
Sentiment:
Neutral
Source: Finnhub
The US dollar retreated across major pairs following the release of disappointing Services PMI data, with the final reading coming in at 52.5 versus the preliminary 52.9 and below the previous month's 54.1. This marks the weakest services sector expansion in approximately 20 months, according to S&P Global's Chief Economist Chris Williamson. The data reveals a broad-based weakening in demand growth, with new business orders showing the smallest rise since early 2024 and manufacturing orders falling for the first time in a year. DXY (Dollar Index) dropped 0.2% to 108.50 following the release, with EUR/USD gaining 25 pips to 1.0325 and GBP/USD advancing to 1.2450. The softer data reinforces expectations that the Federal Reserve may pause its hawkish stance, potentially limiting further dollar strength. Technical indicators suggest immediate support for DXY at 108.30, with resistance at 108.80.
EURUSD
GBPUSD
DXY
Sentiment:
Negative
Source: Finnhub
EUR/USD maintains its position above the crucial 1.1660 support level, showing resilience in early Monday trading. The pair has consolidated in a tight range between 1.1660-1.1680, with buyers defending the psychological support successfully through multiple tests. Technical indicators suggest building momentum for an upward move, with the RSI turning higher from oversold conditions and the MACD showing early signs of a bullish crossover. A decisive break above the 1.17 resistance level would confirm trend continuation and open the path toward 1.1750, the December high. The euro finds underlying support from improving risk sentiment and expectations of continued ECB policy normalization, while the dollar faces headwinds from mixed US economic data. Traders should watch for a daily close above 1.17 as a bullish signal, while failure to hold 1.1660 could trigger a deeper correction toward 1.1620.
EURUSD
Sentiment:
Positive
Source: Marketaux
The US dollar index has declined 0.2% to 103.45 as forex markets shift focus away from Venezuela-related geopolitical concerns toward upcoming economic data releases. Despite initial safe-haven flows supporting the greenback, traders are now positioning for this week's key US economic indicators, including ISM Services PMI and Friday's employment report. EUR/USD has benefited from the dollar's retreat, climbing 25 pips to 1.1675, while USD/CAD dropped 0.3% to 1.3420 as oil prices stabilized above $75 per barrel. Market participants appear to be discounting the Venezuela situation as a localized issue unlikely to trigger broader market disruptions. The dollar's near-term trajectory will likely depend on incoming data confirming or challenging the Fed's current policy stance. Technical analysis shows the DXY facing resistance at 104.00, with support established at 103.20.
EURUSD
USDCAD
DXY
Sentiment:
Negative
Source: Marketaux
AUD/USD has advanced 0.4% to 0.6450 in Asian trading, extending its recovery from last week's lows as risk sentiment improves and dollar weakness persists. The pair benefited from disappointing US ISM Manufacturing data (47.8 vs 48.5 expected), which weighed on the greenback across the board. Markets are now focused on Wednesday's Australian Q4 CPI data, with economists expecting a 2.3% year-over-year reading that could influence RBA policy decisions. The improved risk environment, supported by stable equity markets and commodity prices, has provided additional tailwind for the risk-sensitive Aussie. Technical indicators show AUD/USD breaking above its 50-day moving average at 0.6435, targeting the next resistance at 0.6480. A stronger-than-expected inflation reading could propel the pair toward 0.6500, while disappointment might see support tested at 0.6400. The RBA's hawkish stance relative to other central banks continues to underpin the Australian dollar's medium-term outlook.
AUDUSD
Sentiment:
Very Positive
Source: Marketaux
USD/JPY maintains its bullish momentum above 157.00, supported by elevated US Treasury yields and the Bank of Japan's persistently dovish monetary policy stance. The pair has gained approximately 2.5% since the start of 2025, with the 10-year US Treasury yield holding firm above 4.5%, widening the rate differential between the US and Japan. The BoJ's reluctance to accelerate policy normalization continues to pressure the yen, despite verbal interventions from Japanese officials warning against excessive currency weakness. Technical indicators suggest strong bullish structure with immediate resistance at 158.20 (recent highs) and support established at 156.40 (50-day moving average). The US Dollar Index remains elevated near 108.50, adding further strength to the greenback. Traders should monitor upcoming US economic data and any potential shift in BoJ rhetoric, as sustained moves above 158.00 could trigger renewed intervention concerns from Japanese authorities.
USDJPY
Sentiment:
Very Positive
Source: Marketaux
Japanese government bond yields continue their aggressive selloff, with 10-year yields holding at 2.12%, marking the highest levels since 1999. The latest 10-year JGB auction showed solid demand with a bid-to-cover ratio of 3.30, yet selling pressure persists as investors adjust to the new yield environment. 30-year yields surged an additional 3 basis points to 3.485%, reflecting expectations of sustained Bank of Japan policy normalization. The widening yield differential between US Treasuries and JGBs is reducing the yen's appeal as a funding currency, supporting USD/JPY above 157.00. Technical indicators suggest immediate resistance at 157.80, with support established at 156.50. Rising Japanese yields signal the BOJ's gradual shift away from ultra-loose monetary policy, potentially marking a structural change in global carry trade dynamics. Traders should monitor upcoming BOJ communications for further policy guidance.
USDJPY
Sentiment:
Positive
Source: Finnhub
EUR/USD remains range-bound near 1.0540, showing minimal movement as traders await today's Eurozone inflation figures. Markets anticipate the data will have limited impact on the European Central Bank's current stance, with no rate changes expected throughout 2025. The ECB has maintained a cautious approach following its December rate cut to 3.0%, citing persistent economic uncertainties. Today's inflation release, expected to show annual CPI at 2.4%, could provide short-term volatility but is unlikely to alter the broader monetary policy trajectory. Technical indicators suggest EUR/USD is consolidating between support at 1.0520 and resistance at 1.0580. The pair's muted reaction reflects market consensus that the ECB will remain on hold, maintaining its wait-and-see approach. Traders should monitor any significant deviation from consensus inflation figures, which could trigger a temporary breakout from the current trading range.
EURUSD
Sentiment:
Neutral
Source: Finnhub
The USD has strengthened against commodity-linked currencies following reports of Venezuelan President Maduro's capture, with oil volatility impacting forex markets. WTI crude initially spiked 2.3% to $73.50/barrel before paring gains as traders assessed the complex implications. Scotiabank analysts describe the situation as 'mixed' for oil markets, noting potential supply disruptions from Venezuela's 750,000 bpd output could be offset by increased production elsewhere. The Canadian dollar weakened 0.4% against USD to 1.4350, while other petro-currencies showed similar pressure. Energy sector equities displayed divergent reactions, with integrated oil majors gaining while refiners faced uncertainty. Technical indicators suggest USD/CAD faces resistance at 1.4400, with support at 1.4300. Traders should monitor developments closely as geopolitical uncertainty typically drives safe-haven flows to USD, potentially pressuring commodity currencies further in the near term.
USDCAD
Sentiment:
Positive
Source: Finnhub
The US Dollar Index advanced 0.4% following the release of December FOMC meeting minutes, which revealed a split among Federal Reserve officials regarding the pace of future rate adjustments. Several committee members expressed concerns about persistent inflation risks, suggesting a more cautious approach to monetary easing in 2024. The hawkish undertones pushed EUR/USD down 45 pips to 1.0315, while USD/JPY climbed to 157.80. Market participants noted that the divided outlook reduces the likelihood of aggressive rate cuts previously priced in for early 2024. Technical indicators show the Dollar Index approaching key resistance at 108.50, with momentum oscillators signaling further upside potential. The minutes' impact extended across major pairs, with GBP/USD retreating to 1.2420 and AUD/USD falling below 0.6200. Traders should monitor upcoming inflation data and Fed speakers for clarity on the central bank's direction.
EURUSD
USDJPY
GBPUSD
AUDUSD
Sentiment:
Positive
Source: Marketaux
The US Dollar Index has gained 0.5% in early trading as escalating geopolitical tensions and European political uncertainty drive safe-haven flows into the greenback. EUR/USD declined 0.4% to 1.0420, pressured by concerns over political instability in key European nations ahead of upcoming elections. GBP/USD fell 0.3% to 1.2650 despite earlier bullish momentum, as risk-off sentiment outweighed positive UK economic data. Gold prices retreated 0.8% to $2,045 per ounce as the stronger dollar dampened demand for the precious metal. Technical indicators show the Dollar Index breaking above the 104.50 resistance level, with next targets at 105.20. Traders are monitoring developments in European politics and any escalation in global tensions, which could further support dollar strength. The shift to risk-off positioning suggests continued pressure on risk-sensitive currencies in the near term.
EURUSD
GBPUSD
XAUUSD
DXY
Sentiment:
Very Positive
Source: Marketaux
GBP/USD faces mild selling pressure around 1.2450 as UK mortgage approvals fell to 64,530 in November from 65,010 previously, signaling cooling housing market momentum. Despite the mortgage slowdown, consumer credit jumped sharply to £2.08 billion from £1.71 billion, suggesting resilient consumer spending patterns. Net borrowing of mortgage debt increased to £4.5 billion, recovering from October's £4.2 billion figure. The mixed data reflects divergent UK economic trends, with housing market moderation offset by strong consumer activity. This could complicate the Bank of England's policy decisions as they balance inflation concerns with growth stability. Technical indicators show GBP/USD testing support at 1.2440, with resistance at 1.2480. Traders await upcoming UK services PMI data for clearer directional cues on sterling's trajectory.
GBPUSD
Sentiment:
Neutral
Source: Finnhub
GBP/USD maintains its upward trajectory, trading at 1.2680 with a 0.2% intraday gain as technical momentum indicators remain firmly bullish. The pair has broken above the key 1.2650 resistance level, opening the path toward 1.2750, which represents the December 2023 high. The Relative Strength Index (RSI) sits at 65, indicating strong momentum without being overbought, while the 50-day moving average at 1.2580 provides solid support. Daily MACD continues to show positive divergence, reinforcing the bullish outlook. Market positioning data reveals net long positions in sterling have increased by 15% over the past week, reflecting growing confidence in the pound's strength. Immediate resistance lies at 1.2720, followed by the psychological 1.2750 level. A sustained break above 1.2750 could accelerate gains toward 1.2800, though traders should watch for any deterioration in risk sentiment that could trigger profit-taking.
GBPUSD
Sentiment:
Very Positive
Source: Marketaux
GBP/USD enters 2026 with strong bullish prospects, currently trading at 1.2670 after gaining 8.5% in 2025, as the UK economy shows signs of sustained recovery. Bank of England officials maintain a hawkish stance with interest rates at 4.75%, contrasting with expectations of Federal Reserve rate cuts beginning in Q2 2026. UK GDP growth projections have been revised upward to 2.1% for 2026, supported by improving consumer confidence and business investment. The Dollar Index faces headwinds from anticipated Fed policy shifts, potentially weakening from current levels near 104.00. Technical analysis reveals a multi-year ascending triangle pattern targeting 1.3000, with major support established at 1.2500. Key risks include potential UK-EU trade tensions and global recession fears. Analysts project GBP/USD could reach 1.2850 by mid-year and potentially test 1.3000 by year-end, though volatility is expected around major economic releases and central bank decisions.
GBPUSD
DXY
Sentiment:
Very Positive
Source: Marketaux
The US Dollar Index (DXY) hovers near 105.50 as markets assess implications of potential US policy adventurism on the greenback's global standing. EUR/USD trades cautiously around 1.0420 amid diverging central bank outlooks and geopolitical uncertainties. Rising crude oil prices, with WTI above $74 per barrel, add inflationary pressure that could support dollar strength through hawkish Fed expectations. However, concerns about US fiscal policies and international relations create medium-term headwinds for the currency. Technical analysis shows DXY facing resistance at 106.00, while support holds at 105.00. The dollar's safe-haven appeal remains intact despite policy uncertainties, though sustained geopolitical tensions could trigger volatility. Traders monitor upcoming FOMC minutes and US economic data for clearer policy signals affecting dollar positioning across major pairs.
EURUSD
DXY
Sentiment:
Neutral
Source: Marketaux
GBP/USD has declined 0.4% to 1.2640 in Monday's session as deteriorating risk sentiment drives investors toward the safe-haven US dollar. Global equity markets fell sharply with the S&P 500 down 1.2%, triggering defensive positioning across currency markets. The pound's recent rally faces its first significant test as traders book profits near the 1.2700 resistance level. Despite today's pullback, the pair remains above the critical 1.2600 support, maintaining its broader uptrend structure. The Dollar Index surged 0.6% to 104.80, benefiting from haven demand amid concerns over global growth prospects. UK economic fundamentals remain supportive, but short-term momentum has shifted negative with RSI falling below 50. Immediate support lies at 1.2620 (50-day MA), while resistance at 1.2680 must be reclaimed to restore bullish momentum. Traders await Tuesday's UK Services PMI data, which could determine whether this pullback extends or buying interest returns.
GBPUSD
DXY
Sentiment:
Negative
Source: Marketaux
EUR/USD remains the focal point for traders, consolidating near 1.0430 with potential for directional breakout pending key economic releases. GBP/USD shows vulnerability around 1.2450, facing pressure from mixed UK data and dollar resilience. USD/JPY maintains upward bias near 157.80, supported by Bank of Japan's dovish stance versus Fed's relatively hawkish positioning. USD/CHF trades defensively around 0.9080 as Swiss franc benefits from safe-haven flows amid global uncertainties. Technical setups favor EUR/USD shorts below 1.0400 targeting 1.0350, while GBP/USD could test 1.2380 support on further weakness. USD/JPY longs remain attractive above 157.50 with 159.00 as the next major target. Risk management crucial as month-end flows and upcoming data releases including US NFP could trigger significant volatility across all major pairs.
EURUSD
GBPUSD
USDJPY
USDCHF
Sentiment:
Neutral
Source: Marketaux
XAU/USD has gained 2.1% to reach $4,420 in early week trading, while XAG/USD jumped 3.7% to $75.46, as precious metals maintain their bullish momentum from the start of 2026. The rally follows Friday's strong opening that saw some profit-taking into the close, with gold encountering resistance at the 100-hour moving average. The sustained bid in precious metals reflects ongoing safe-haven demand amid global economic uncertainties and potential shifts in central bank policies. Technical indicators suggest gold faces immediate resistance at the 100-hour MA, with a break above potentially opening the path toward $4,450. Support has formed around $4,350 from Friday's consolidation. The strength in precious metals typically signals risk-off sentiment in broader markets, which could support safe-haven currencies like JPY and CHF while pressuring commodity-linked currencies such as AUD and NZD in the near term.
XAUUSD
XAGUSD
Sentiment:
Very Positive
Source: Finnhub
USD/JPY has rallied 0.7% to 157.20, marking a fresh multi-month high as uncertainty surrounding Bank of Japan policy decisions keeps the yen under sustained pressure. The US-Japan yield differential has widened to 380 basis points, with US 10-year yields at 4.65% versus Japan's 0.85%, driving carry trade flows into the pair. Market participants remain skeptical about the BoJ's commitment to policy normalization, with Governor Ueda's recent comments suggesting continued accommodation. Technical indicators show strong bullish momentum with RSI at 72, approaching overbought territory. The pair has broken above the key 156.50 resistance, opening targets toward 158.00 and potentially 160.00. Support has formed at 156.00, coinciding with the previous resistance level. Risk-off sentiment paradoxically supports USD/JPY as dollar strength outweighs traditional yen haven demand. Traders should monitor any shifts in BoJ rhetoric or intervention warnings from Japanese officials.
USDJPY
Sentiment:
Very Positive
Source: Marketaux
