The Netherlands’ GDP grew by 1.8% year-on-year in the third quarter, beating the expected 1.6%. In currency markets, the USD/INR pair bounced back as foreign investors continued to sell Indian stocks. In other news, the Pound did well against the US Dollar despite strong GDP data from the US for the third quarter. The Silver market saw price rises, while the EUR/JPY dropped to around 183.50.

Forex Market Movements

The AUD/JPY is currently low at about 104.00 due to a hawkish Bank of Japan. In contrast, the AUD/USD reached a yearly high above 0.6700. Looking at global markets, EUR/USD is below 1.1800 with a weaker US Dollar. The GBP/USD is stable around 1.3500 during quiet pre-Christmas trading, while Gold dipped slightly after reaching record highs due to profit-taking. In the crypto world, Shiba Inu is showing a downward trend, trading below $0.000070. Stellar is also experiencing bearish momentum, with prices falling under $0.22. FXStreet has warned about the risks of investments and highlighted that they do not guarantee the accuracy or timeliness of the information given.

US Dollar Trends and Economic Indicators

As we approach the new year, the US Dollar is generally weaker, which helps keep EUR/USD near a three-month high of 1.1800. This weakness is driven by expectations that the Federal Reserve will adopt a more dovish stance in 2026. The latest US Consumer Price Index data from November 2025 showed an unexpected low of 2.8%, supporting the view of potential rate cuts next year. Trading is slow due to the Christmas holiday, leading to thinner market liquidity. This means current prices may not be very reliable, so we should be careful about overreacting to minor movements. Once trading volume increases, we could see more volatility as positions are adjusted for the new year. Gold recently reached a record high of $4,525 before easing slightly due to profit-taking. The fundamental reasons for its strength—like a weak dollar and ongoing geopolitical risks—remain strong. This rally has significantly surpassed previous highs seen during the inflation peak of 2024. There’s a clear difference in central bank policies, especially with a hawkish Bank of Japan boosting the Yen. This is why AUD/JPY is under pressure, even as the Australian dollar hits yearly highs against the US dollar. The BoJ is hinting at ending its loose monetary policies, with many expecting a major shift in early 2026. In Europe, the recent 1.8% GDP growth in the Netherlands was a pleasant surprise and exceeded expectations. While it’s just one country, it indicates some economic resilience in the Eurozone, where overall Q3 GDP growth was a more modest 1.2%. If this trend continues, it could provide further support for the Euro. In contrast to the optimism seen in major currencies and gold, more speculative assets are facing downward pressure. Cryptocurrencies like Shiba Inu and Stellar are experiencing significant selling, approaching their lowest levels of the year. This suggests that while traders are moving away from the dollar, they prefer traditional safe havens and major currencies over higher-risk assets. Create your live VT Markets account and start trading now.

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