Market Overview

Waller's dovish rhetoric halted the bears' attack on EURUSD. Slowing UK inflation caused the pound to fall, while the BoJ is preparing to raise rates.

The Fed is in no hurry to cut rates, and Hassett is unlikely to accelerate the Fed's cycle. The yen is concerned about the carry trade, while the ECB breathed a sigh of relief.

This year risks being the worst for the US dollar since 2017. Since the beginning of 2025, the DXY has lost about 9.5% and is likely to continue falling due to divergences in monetary policy. Major central banks are holding.

Trump pushes for more Fed rate cuts, while no changes are expected from the ECB until 2027. The BoE is concerned about the weak economy, while the yen has become a plaything for carry traders.

The ECB is weighing the strengths of the euro, and the US jobs report will determine the path of EURUSD. Switzerland and Canada are satisfied with the current interest rates.

Stock indices The Fed managed to please the American stock market by easing its policy and forecasting an increase in GDP from 1.8% to 2.3%, as well as a slowdown in inflation from 3% to 2.5% in 2026, while also.

The Fed lowered rates to 3.50–3.75% and resumed asset purchases. The CHF is gaining on lower tariffs, while the GBP is relying on hawkish BoE.

While some central banks are signals end of easing cycle, the Fed intends to continue. The USD remains stable as the White House confirms the Fed's independence.

Tariffs have changed the status of the dollar, and the Fed may help it. The ECB and RBA could hike rates in 2026.

Gold retreats on Fed’s hawkish stance; high ETF demand and Chinese purchases sustain prices, but easing may slow gains.

Americans are unhappy with high prices and tariffs and are sceptical about the economic outlook, but they continue to spend money. The University of Michigan Consumer Sentiment Index rose to 53.3 in December, driven by optimism about the end of.

In 2026, experts favour the yen, see modest euro growth, and expect pressure on the franc, with Fed policy still key for the dollar.