Forex Today: US Dollar rebounds to wrap up 2025
The US Dollar (USD) Index extends its recovery heading toward the end of the year and trades at a fresh nine-day high above 98.30 on Wednesday.
The US Department of Labor will publish the weekly Initial Jobless Claims data later in the day. The New York Stock Exchange and the Nasdaq will operate on a regular schedule on New Year's Eve but the US bond markets will close early. Both markets will be closed on January 1.
The Federal Open Market Committee (FOMC) released the Minutes of the December meeting late Tuesday. The document showed that most participants are willing to deliver additional rate cuts if inflation declines over time. "Some of those who supported cutting rates indicated the decision was finely balanced, or they could have supported leaving rates unchanged," the publication read. After staying quiet on Monday, the USD Index gained about 0.2% on Tuesday.
Following Monday's sharp decline, Gold staged a correction on Tuesday but met resistance near $4,400 to end the day flat. XAU/USD struggles to find direction early Wednesday and fluctuates above $4,300. Nevertheless, Gold remains on track to end the fifth consecutive month in positive territory.
Silver comes under renewed bearish pressure and declines toward $70, losing more than 5% on Wednesday. XAG/USD is still up nearly 28% in December and about 150% for the year.
EUR/USD continues to edge lower after closing in the red on Tuesday and trades below 1.1750 in the European session on Wednesday. The pair is up 13% year-to-date.
GBP/USD stays relatively quiet near 1.3450 after losing more than 0.3% on Tuesday. The pair remains on track to end the year with a gain of about 7%.
USD/JPY clings to small recovery gains above 156.50 in the European morning on Wednesday. The pair is virtually unchanged on a yearly basis.
Source: FXstreet.com
