USD/CNY faces downward pressure after China's December manufacturing PMI unexpectedly expanded to 50.1, surpassing forecasts and marking a return to growth territory. The official non-manufacturing PMI also showed resilience at 50.2, suggesting broader economic stabilization. The People's Bank of China set the daily reference rate at 7.0288, maintaining a stable stance despite yuan strength. Supporting measures include expanded consumer trade-in subsidies and digital product schemes for 2026, though authorities avoided aggressive housing stimulus, opting instead for measured property tax adjustments. The unexpected PMI improvement contrasts with OPEC+ maintaining output pause amid global oil surplus concerns, potentially limiting commodity-driven yuan support. Technical levels show USD/CNY testing support near 7.02, with resistance at 7.05. Traders should monitor upcoming Chinese economic releases and any policy shifts that could accelerate yuan appreciation against the dollar.
USDCNY
Sentiment:
Negative
Source: Finnhub
The US dollar maintained its position against major currencies following mixed housing data that showed resilience in the property market. The Case-Shiller 20-city home price index rose 1.3% year-over-year in October, slightly exceeding the 1.2% forecast but decelerating from September's 1.4% gain. Monthly prices increased 0.3%, beating the 0.1% consensus significantly. The FHFA national index showed a 1.7% annual increase, marking the lowest growth in 13 years. This data suggests ongoing housing market moderation while avoiding sharp declines that could trigger broader economic concerns. The controlled cooling supports the Federal Reserve's gradual approach to monetary policy adjustments. USD pairs showed limited reaction, with EUR/USD holding near 1.0500 and USD/JPY stable around 157.00. Traders await tomorrow's consumer confidence data for further directional cues on dollar strength.
EURUSD
USDJPY
Sentiment:
Neutral
Source: Finnhub
USD/JPY is testing critical resistance near 158.00, forming a bearish double top pattern that suggests potential reversal after the pair's recent uptrend. The technical formation indicates selling pressure is building as bulls fail to push through the 158.00 psychological barrier for the second time. The Bank of Japan's continued dovish stance has limited yen strength, but the double top pattern warns of exhaustion in dollar buying momentum. Key support levels to watch include 156.50 (neckline of the pattern) and 155.00 (50-day moving average). A confirmed break below 156.50 would validate the reversal pattern, potentially targeting 154.00-154.50 zone. Conversely, a decisive break above 158.20 would invalidate the bearish setup and could trigger fresh buying toward 160.00. Traders should monitor upcoming US economic data and any shifts in BOJ policy communication for catalysts that could determine the pair's direction from this critical juncture.
USDJPY
Sentiment:
Negative
Source: Marketaux
USD/CNY remained steady at 7.0348 after the People's Bank of China kept interest rates unchanged, defying market expectations for monetary easing. The PBOC's decision to shift focus toward fiscal support rather than rate cuts signals confidence in current policy settings despite global economic headwinds. Meanwhile, geopolitical tensions escalated with Saudi airstrikes in Yemen and renewed US-Iran friction, keeping oil risk premiums elevated and supporting the dollar's safe-haven appeal. Silver markets showed resilience, recovering from their sharpest 5-year selloff as precious metals head for their best annual performance since 1979. US oil inventories surprised to the upside, tempering immediate supply concerns. Technical indicators suggest USD/CNY consolidation near current levels, with resistance at 7.0500 and support at 7.0200. Traders should monitor developments in Middle East tensions and China's fiscal policy announcements for directional cues.
USDCNY
Sentiment:
Neutral
Source: Finnhub
EUR/USD remains range-bound near 1.1760 as year-end holiday trading conditions create thin liquidity across forex markets. The pair has oscillated within a tight 20-pip range during the session, with reduced trading volumes amplifying reactions to macro headlines. Market participants are cautiously positioned ahead of the new year, with the dollar index holding steady near recent levels. The thin liquidity environment has caused sporadic volatility spikes on minimal news flow, making technical levels more significant. Immediate resistance sits at 1.1780, coinciding with the December high, while support has formed at 1.1740. Gold has shown similar consolidation patterns, trading sideways as traders await fresh catalysts for 2024. The lack of major economic releases until early January suggests continued choppy trading conditions, with technical levels likely to guide short-term price action as institutional flows remain subdued.
EURUSD
Sentiment:
Positive
Source: Marketaux
USD strength remains vulnerable as growing concerns over Big Tech valuations and the potential for an AI bubble burst in 2026 weigh on market sentiment. While the tech-heavy US equity markets managed to finish 2025 relatively unscathed, analysts warn that stretched valuations in the technology sector could trigger risk-off flows that would impact the dollar's safe-haven appeal. The mounting debate around sustainable AI monetization and profitability raises questions about continued capital inflows into US markets. Technical traders note USD index hovering near 104.50, with potential downside pressure if tech sector correction materializes. A significant tech sector reset could prompt capital reallocation away from US assets, benefiting currencies like JPY and CHF on safe-haven flows, while potentially supporting EUR and GBP as alternatives. Forex traders should monitor tech earnings and valuation metrics as leading indicators for potential USD weakness in 2026.
EURUSD
GBPUSD
USDJPY
USDCHF
Sentiment:
Negative
Source: Finnhub
EUR/USD is positioned for potential upside as European stock markets prepare for a positive opening following the Christmas break. The pair currently trades near 1.0440, with bullish sentiment in European equities likely to support the euro against the dollar. Holiday-thinned liquidity conditions are expected to amplify price movements, creating opportunities for short-term traders. While specific economic data releases are limited during the holiday period, the overall risk-on sentiment in European markets suggests increased appetite for the euro. Geopolitical uncertainties continue to linger in the background, though their immediate impact appears muted. Technical indicators show EUR/USD testing resistance at 1.0450, with a break above potentially targeting 1.0480. Support remains firm at 1.0420. Traders should remain cautious of potential volatility spikes due to reduced market participation, while the positive equity market correlation could provide directional cues for the currency pair in the near term.
EURUSD
Sentiment:
Positive
Source: Marketaux
USD/CNY strengthened to 7.0331 as set by the PBOC, reflecting ongoing yuan weakness amid geopolitical tensions and commodity market volatility. Silver prices hit record highs before experiencing a dramatic reversal, driven by Elon Musk's comments on supply risks and China's export restrictions on critical materials. The precious metal's wild swings underscore market uncertainty as China conducts military drills around Taiwan, simulating a blockade scenario. Meanwhile, the Bank of Japan signaled its intention to continue rate hikes, suggesting policy remains far from neutral despite recent tightening measures. The combination of China's export controls, regional military tensions, and diverging central bank policies is creating significant volatility across Asian FX markets. Traders should monitor the 7.05 resistance level on USD/CNY for potential breakouts, while safe-haven flows may continue supporting the yen against regional currencies.
USDCNY
USDJPY
Sentiment:
Negative
Source: Finnhub
USD/CNH has strengthened 0.2% to 7.3150 as risk-off sentiment emerges following China's announcement of "Justice Mission 2025" military drills around Taiwan. The exercises, featuring blockade-style operations and multi-directional naval approaches, have heightened geopolitical tensions in the Asia-Pacific region. Safe-haven demand for the US dollar increased as investors moved away from regional currencies amid escalating rhetoric framed as warnings against Taiwan independence. The offshore yuan weakened despite China's robust economic data released earlier this week, as geopolitical concerns overshadowed fundamental factors. Technical indicators show USD/CNH testing resistance at 7.3200, with momentum indicators suggesting further upside if tensions persist. Support remains at 7.3000 psychological level. Traders are monitoring for any escalation beyond scheduled drills, which could trigger additional yuan weakness and broader risk-off flows affecting Asian currency pairs.
USDCNH
Sentiment:
Negative
Source: Finnhub
USD/JPY faces increasing pressure as bond market volatility signals significant shifts ahead for 2026 fixed income markets. The ICE BofAML MOVE Index, tracking Treasury volatility, has surged to multi-month highs, indicating heightened uncertainty in rate expectations. Japanese government bond yields remain near decade highs while US Treasury yields show mixed signals, creating divergent monetary policy expectations between the Fed and BoJ. The iShares Core U.S. Aggregate Bond ETF has declined 2.1% this quarter, reflecting broader fixed income weakness. Technical indicators suggest USD/JPY could test the 150.00 psychological level if bond volatility persists, with immediate resistance at 152.50. The S&P 500's correlation with bond yields remains elevated at 0.75, suggesting continued risk asset sensitivity to fixed income movements. Traders should monitor upcoming Fed and BoJ policy meetings for directional cues on the pair.
USDJPY
Sentiment:
Negative
Source: Marketaux
EUR/USD maintains strength near 1.1800, gaining 0.5% (60 pips) as the dollar index futures dropped 0.8% following disappointing US economic data. US GDP growth came in at 4.3%, missing consensus estimates and fueling speculation of potential Fed rate cuts in 2026. Market pricing now shows a 65% probability of at least one 25-basis-point cut by mid-2026, compared to 45% last week. The euro found additional support from improving risk sentiment and stable European economic indicators. Technical analysis shows strong support at 1.1750 (50-day MA) with resistance at 1.1850 (November high). The dollar index broke below the key 104.00 level, its lowest since early December. Near-term EUR/USD momentum remains bullish above 1.1750, with potential acceleration toward 1.1900 if US data continues to disappoint and Fed cut expectations solidify.
EURUSD
Sentiment:
Very Positive
Source: Marketaux
The US Dollar index has shown weakness following signals that incoming President Trump may push for aggressive rate cuts, potentially pressuring the Federal Reserve's monetary policy independence. Iran's rejection of International Atomic Energy Agency nuclear site inspections following reported June 2025 bombings has escalated Middle East geopolitical tensions, typically supporting safe-haven flows into USD and JPY. However, Trump's dovish stance on monetary policy appears to be outweighing geopolitical concerns for now. The ECB faces challenges from both regional instability and potential US policy shifts, keeping EUR/USD under pressure. Market participants are closely monitoring how these developments affect major currency pairs, with USD/JPY likely to see increased volatility as both currencies compete for safe-haven demand. Technical levels show USD index testing support at 104.50, while resistance remains at 105.80.
EURUSD
USDJPY
Sentiment:
Negative
Source: Marketaux
USD/JPY has declined sharply following the Bank of Japan's unexpected policy adjustment, with the pair trading near critical support levels. The BoJ's hawkish stance marks a significant shift from its ultra-loose monetary policy, boosting yen demand across major pairs. Market participants are reassessing their long dollar/short yen positions as the interest rate differential between the US and Japan narrows. Technical indicators suggest the pair has broken below key moving averages, with immediate support at 155.50 and resistance at 157.00. The double top formation near 157.90 signals potential for further downside, especially if intervention concerns persist. Traders should monitor upcoming Japanese economic data and any verbal intervention from Japanese officials, as these factors could accelerate yen strength and pressure USD/JPY toward the 154.00 psychological level.
USDJPY
Sentiment:
Negative
Source: Marketaux
USD/JPY has pulled back from recent highs as speculation of potential Japanese intervention alters market dynamics for yen shorts. The pair's retreat follows verbal warnings from Japanese officials, creating uncertainty among traders holding short yen positions. EUR/JPY has also experienced selling pressure, indicating broad-based yen strength across major crosses. The risk-reward profile for shorting the yen has shifted significantly, with traders reducing exposure to avoid potential intervention-related volatility. Technical analysis shows USD/JPY struggling to maintain momentum above 157.00, with increased selling pressure emerging at higher levels. Market participants are closely monitoring the 158.00 level, historically a trigger point for Japanese authorities. The current environment suggests caution for dollar bulls, as any concrete intervention could spark rapid yen appreciation and force widespread position unwinding.
USDJPY
EURJPY
Sentiment:
Negative
Source: Marketaux
USD/JPY has formed a bearish double top pattern near the 157.90 resistance level, signaling potential reversal in the pair's recent uptrend. This technical formation suggests exhaustion in buying pressure and increased probability of a corrective move lower. The pattern's neckline sits around 156.20, with a decisive break below potentially triggering accelerated selling toward 154.50. Volume analysis confirms weakening momentum on recent attempts to breach 158.00, reinforcing the bearish technical setup. RSI divergence adds to the bearish bias, showing lower highs while price attempted to retest resistance. Traders are advised to watch for confirmation of the pattern completion, which would validate bearish positions. Near-term support levels include 156.50 and 155.80, while any unexpected break above 158.00 would invalidate the double top scenario and potentially reignite bullish momentum.
USDJPY
Sentiment:
Very Negative
Source: Marketaux
The US dollar remains stable around 108.50 on the DXY index as markets assess inflation prospects eight months after significant policy changes. Despite expectations of inflationary pressures from fiscal stimulus and trade policies, core PCE inflation continues hovering near 2.8%, failing to show the anticipated surge. Federal Reserve officials maintain a cautious stance, with markets pricing in only two 25-basis-point rate cuts for 2025, down from earlier projections of four cuts. The disconnect between policy expectations and actual inflation data creates uncertainty for USD pairs heading into the new year. Technical indicators suggest the dollar index faces resistance at 109.00 while finding support at 107.80. Traders are closely monitoring upcoming CPI releases and Fed communications for clearer direction, as the 'inflation mirage' phenomenon could lead to significant repricing across major USD pairs if expectations fail to materialize.
EURUSD
GBPUSD
USDJPY
AUDUSD
NZDUSD
USDCAD
USDCHF
Sentiment:
Neutral
Source: Finnhub
USD/CNY remained steady at 7.0471 following the PBOC's daily reference rate setting, while Asian currencies showed mixed performance amid diverging policy expectations. The South Korean won strengthened as the National Pension Service activated strategic FX hedging measures to curb volatility and support the currency. Nomura analysts highlighted a policy split across Asia as markets price in only two Fed rate cuts for 2026, creating uncertainty for regional currencies. Gold briefly spiked above $2,500 before retreating, reflecting broader risk sentiment shifts. Japan's October BOJ minutes revealed policymaker concerns about persistent inflation and asset price risks, with the Services Producer Price Index rising 2.7% year-over-year. The delayed US semiconductor tariffs on China suggest potential trade truce developments, which could impact regional currency dynamics. Traders should monitor the 7.05 support level for USD/CNY and watch for further intervention signals from Asian central banks.
USDCNY
USDKRW
USDJPY
Sentiment:
Neutral
Source: Finnhub
USD/JPY declined 0.4% to 156.80 as markets reacted to Trump advisor Kevin Hassett's dovish Fed commentary, stating the central bank is 'way behind the curve in lowering rates.' Hassett, leading Fed chair candidate at 62% on betting markets versus Kevin Warsh at 22%, highlighted Trump's trade agenda success and a $600 billion year-over-year deficit reduction. His aggressive rate-cut stance contrasts with current Fed policy, potentially pressuring the dollar across major pairs. Markets are pricing in increased probability of faster monetary easing under potential Hassett leadership, weakening USD against G10 currencies. Technical indicators show USD/JPY testing support at 156.50, with further downside possible toward 155.80 if dovish Fed expectations intensify. The dollar index (DXY) dropped 0.3% to 107.20, approaching key support at 107.00.
USDJPY
DXY
Sentiment:
Negative
Source: Finnhub
The US dollar strengthened across major pairs following the release of stronger-than-expected Q3 GDP data at 4.3% versus 3.3% forecast. The robust growth was accompanied by concerning inflation metrics, with the GDP deflator jumping to 3.7% from 2.1% previously, significantly above the 2.7% estimate. Core PCE inflation held steady at 2.9%, while consumer spending accelerated to 3.5% from 2.5% in the prior quarter. The data presents a complex picture for Federal Reserve policy, as strong growth supports higher rates but elevated inflation readings may complicate the central bank's path forward. Dollar index gained 0.5% following the release, with EUR/USD dropping to test 1.0780 support levels. The combination of robust growth and sticky inflation suggests the Fed may maintain its hawkish stance longer than anticipated, providing continued support for USD strength in the near term.
EURUSD
DXY
Sentiment:
Very Positive
Source: Finnhub
USD/JPY jumped 1.2% to 158.45 following the Bank of Japan's historic benchmark interest rate increase, marking the highest level in 30 years. The unexpected hawkish move signals Japan's decisive shift away from ultra-loose monetary policy, strengthening the yen temporarily before dollar bulls regained control. Japanese fixed-income assets experienced significant volatility, with 10-year JGB yields rising 15 basis points to 1.15%. The policy divergence between an increasingly hawkish BOJ and expectations of Fed rate cuts creates complex dynamics for USD/JPY. Technical analysis shows the pair breaking above 158.00 resistance, with momentum indicators suggesting potential extension toward 159.20. However, further BOJ tightening could cap gains, with support now established at 157.50. Traders should monitor Japanese inflation data and Fed communications for directional cues.
USDJPY
Sentiment:
Positive
Source: Marketaux
