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
EUR/USD traded sideways at 1.0420, fluctuating within a tight 20-pip range as European stock markets displayed mixed performance ahead of crucial US economic data releases. The euro found support from better-than-expected German business confidence data, offsetting concerns about broader European economic growth. Market participants remain cautious, awaiting US durable goods orders and consumer confidence figures that could provide direction for the dollar. Technical indicators suggest consolidation between 1.0400 support and 1.0450 resistance, with low volatility reflecting year-end positioning adjustments. The pair's 50-day moving average at 1.0435 acts as immediate resistance, while the 200-day MA at 1.0380 provides longer-term support. Traders should watch for a breakout from the current range, with US data likely serving as the catalyst for directional movement.
EURUSD
Sentiment:
Very Positive
Source: Marketaux
USD/JPY retreated from its recent highs near 158.00 as Japanese officials intensified verbal warnings about potential currency intervention. The pair has pulled back 0.4% (63 pips) from session highs after Finance Ministry officials expressed concern over rapid yen depreciation. The yen's weakness has been driven by the widening interest rate differential between Japan and the US, with the Bank of Japan maintaining ultra-loose policy while the Federal Reserve remains hawkish. Technical indicators show USD/JPY facing strong resistance at the psychologically important 158.00 level, with immediate support at 157.20. Market participants remain cautious about pushing the pair higher, mindful of Japan's history of sudden intervention when the yen weakens too rapidly. Traders are closely monitoring official rhetoric and positioning data for signs of actual intervention, which could trigger sharp yen appreciation and unwinding of carry trades across multiple currency pairs.
USDJPY
Sentiment:
Negative
Source: Marketaux
GBP/USD advanced 0.5% (63 pips) to 1.2680 during Monday's session, capitalizing on broad-based dollar weakness in thin holiday trading conditions. The pound's gains were amplified by reduced liquidity as many traders remain sidelined ahead of the Christmas break. EUR/GBP remained relatively stable near 0.8340, suggesting the move was primarily dollar-driven rather than sterling strength. Technical analysis shows GBP/USD breaking above the 1.2650 resistance level, with next targets at 1.2720 (50-day moving average) and 1.2750 (December high). Support is established at 1.2620, coinciding with the 20-day moving average. The lack of significant economic data releases this week means price action will likely remain choppy and driven by overall dollar sentiment. Traders should be cautious of potential whipsaw movements due to thin liquidity conditions, which can exaggerate price swings in both directions during the holiday period.
GBPUSD
EURGBP
DXY
Sentiment:
Positive
Source: Marketaux
The US dollar has weakened against major currencies as risk appetite improves with S&P 500 momentum trading gaining traction. EUR/USD has pushed higher by 0.2% to 1.0445, while Gold spot prices surged 0.8% to $2,625 per ounce, reflecting reduced safe-haven dollar demand. The Nasdaq 100's strong performance has encouraged traders to shift from defensive dollar positions into higher-yielding assets. Silver also benefited from the risk-on sentiment, climbing 1.2% to $29.85. Technical indicators suggest the dollar index faces resistance at 108.50, with support at 107.20. The shift in market sentiment comes as traders position for potential year-end portfolio adjustments and anticipate softer Fed rhetoric in 2025. Currency traders should monitor equity market momentum as a key driver for near-term dollar direction, with continued S&P strength likely to pressure the greenback further.
EURUSD
XAUUSD
XAGUSD
Sentiment:
Negative
Source: Marketaux
AUD/USD has surged 0.5% to 0.6285 following the release of hawkish RBA meeting minutes that reinforced the central bank's commitment to maintaining current interest rates. The minutes revealed board members remain concerned about persistent inflation pressures, with underlying inflation still uncomfortably above the 2-3% target range. RBA officials emphasized they need to see more convincing evidence of inflation moderating before considering rate cuts, contrasting with market expectations of early 2025 easing. The Australian dollar found additional support from improved risk sentiment and steady commodity prices. Technical analysis shows AUD/USD broke above the 0.6250 resistance level, with next target at 0.6320 (50-day moving average). Support has formed at 0.6230. Traders should watch upcoming Australian employment data and Chinese economic indicators as key catalysts for the pair's direction in the near term.
AUDUSD
Sentiment:
Very Positive
Source: Marketaux
USD/JPY has declined 0.5% to trade below 156.50, driven by continued verbal intervention from Japanese officials warning against excessive yen weakness. The pair retreated from recent highs near 157.00 as market participants grew cautious about potential government action to support the currency. Meanwhile, gold and silver reached new record highs, with safe-haven flows benefiting the yen amid broader risk-off sentiment. The PBOC set the USD/CNY central rate at 7.0523, supporting regional currency strength. RBA meeting minutes highlighted upside inflation risks, potentially limiting further AUD weakness. Technical indicators suggest immediate support at 156.00, with resistance now established at 157.00. Traders remain vigilant for any signs of actual intervention from Japanese authorities, which could trigger sharp yen appreciation. The combination of official warnings and record precious metal prices suggests continued volatility in yen crosses through year-end.
USDJPY
USDCNY
Sentiment:
Negative
Source: Finnhub
USD/JPY has retreated 0.4% to 156.20 as safe-haven demand for the yen intensifies amid escalating Middle East tensions. Prime Minister Netanyahu's warnings about Iran's nuclear ambitions and planned strategic discussions with the Trump administration have heightened geopolitical uncertainty, driving investors toward traditional safe assets. The Japanese currency gained across the board, with cross pairs like EUR/JPY and GBP/JPY falling 0.5% and 0.6% respectively. Gold simultaneously surged 1.2% to $2,042 per ounce, confirming the risk-off sentiment. The dollar index weakened 0.3% as traders reassess Federal Reserve rate expectations in light of potential geopolitical disruptions to global growth. Technical indicators show USD/JPY breaking below the key 156.50 support level, with the next target at 155.80. Traders should monitor developments in US-Iran relations and any shifts in defense sector positioning, which could further influence safe-haven flows.
USDJPY
EURJPY
GBPJPY
Sentiment:
Negative
Source: Finnhub
USD/JPY advanced 0.3% to 157.45 as Japanese Government Bond (JGB) yields rose, weakening the yen's appeal amid a broader shift in market dynamics. The 10-year JGB yield climbed 5 basis points to 1.08%, its highest level in six months, reducing the currency's attractiveness for carry trades. Gold's record-breaking rally to $2,080 per ounce paradoxically supported risk sentiment as investors view the precious metal's strength as indicative of controlled inflation expectations rather than crisis concerns. Small-cap focused strategies gaining traction for 2025 suggest improved risk appetite, with USD/JPY benefiting from the optimistic outlook. The pair found support at 157.00 and faces resistance at 158.00, with momentum indicators favoring further upside. Traders should watch upcoming Bank of Japan communications and US Treasury yields, as any divergence in monetary policy expectations could accelerate USD/JPY gains toward the 159.00 level.
USDJPY
Sentiment:
Very Positive
Source: Marketaux
USD/CAD declined 0.2% to 1.4285 following stronger-than-expected Canadian producer price data. The Industrial Product Price Index (IPPI) rose 6.1% year-over-year in November, surpassing the 6.0% prior reading, while Raw Materials Price Index (RMPI) jumped to 6.4% from 5.8% previously. Month-over-month IPPI came in at 0.9%, tripling the 0.3% estimate. The data marked 14 consecutive months of annual increases, with 16 out of 21 commodity groups showing price gains. Energy and petroleum products led the surge, posting their strongest monthly gain since January. The robust inflation data reinforces the Bank of Canada's cautious stance on rate cuts, providing support for the Canadian dollar. Technical resistance for USD/CAD sits at 1.4350, while support has formed at 1.4250. Traders should monitor upcoming US dollar movements and oil prices, which significantly influence CAD strength.
USDCAD
Sentiment:
Negative
Source: Finnhub
EUR/USD traded sideways around 1.0400, showing minimal reaction to the European Central Bank's policy communications that aligned with market expectations. The pair remained range-bound within a 0.15% band as traders digested the ECB's stance, which offered no surprises regarding future monetary policy direction. Market participants had already priced in the central bank's current approach to managing eurozone inflation and growth concerns. The lack of fresh catalysts kept the euro confined between 1.0380 support and 1.0420 resistance levels. US Dollar Index futures showed modest strength at 108.20, limiting upside potential for EUR/USD. With no significant policy shifts from the ECB, traders are now focusing on upcoming US economic data releases and Federal Reserve commentary for directional cues. Near-term consolidation appears likely unless external factors provide fresh momentum to break the established trading range.
EURUSD
Sentiment:
Very Positive
Source: Marketaux
USD/JPY has declined to 156.20, falling 0.5% as the Japanese Yen attracts safe-haven demand amid growing market uncertainty heading into year-end. The Yen's strength comes despite the Bank of Japan maintaining its dovish stance, with policy divergence between the BoJ and other major central banks remaining wide. Meanwhile, GBP/USD has risen 0.4% to 1.2580 following better-than-expected UK GDP data showing 0.3% quarterly growth. German business sentiment for 2026 has deteriorated, with the Ifo Business Climate Index suggesting continued economic headwinds for Europe's largest economy. Technical indicators show USD/JPY approaching key support at 156.00, with a break below potentially accelerating declines toward 155.50. The combination of thin holiday liquidity and safe-haven flows could continue supporting the Yen, while traders remain cautious about positioning ahead of the new year.
USDJPY
GBPUSD
Sentiment:
Neutral
Source: Marketaux
