Forex calm in holiday mood

Forex markets quiet ahead of Fed minutes

Forex Today: Eyes on FOMC Minutes as Holiday Mood Sets In

Financial markets opened Tuesday, December 30, in a subdued tone with thin trading volumes, a typical condition ahead of the New Year holiday.

In the second half of the day, the United States economic calendar will feature housing data and the minutes of the December Federal Reserve policy meeting — an event that could provide fresh direction to markets.

US Dollar Performance This Month

The US Dollar registered its weakest performance in December against the Australian Dollar.

According to the currency heat map, the US Dollar declined against most major currencies including the Euro, Pound, and Canadian Dollar, while remaining nearly unchanged against the Japanese Yen.

The US Dollar Index (DXY) held steady around 98.00, moving sideways in the European morning session.

United States Economic Data; Limited Market Reaction

Pending Home Sales rose 3.3% in November, marking the highest level in three years.

The Dallas Fed Manufacturing Index fell to -10.9 in December, slightly lower than November’s reading.

These figures failed to trigger a noticeable market reaction, with the US Dollar continuing to trade flat.

Precious Metals; Sharp Correction After Records

Gold (XAU/USD) staged a sharp correction on Monday, losing more than 4% — its largest daily drop in months. On Tuesday, the metal recovered modestly but remained below $4,400.

Silver (XAG/USD) also corrected heavily, falling nearly 9% after hitting a record high of $84 earlier in the week. On Tuesday, Silver rebounded more than 3%, climbing toward $75.

Major Currency Pairs; Limited Moves

EUR/USD closed Monday virtually unchanged and steadied above 1.1750 in Tuesday’s European session.

GBP/USD posted marginal gains but lacked momentum, holding near 1.3500.

USD/JPY lost more than 0.3% on Monday as the hawkish tone in the Bank of Japan’s Summary of Opinions supported the Yen. The pair stabilized around 156.00 early Tuesday.

Conclusion: Markets Await Fresh Catalyst

Forex markets at the end of 2025 remain quiet and thinly traded.

The US Dollar is weak against most peers, precious metals are recovering after sharp corrections, and major currency pairs are consolidating.

The release of the Federal Reserve minutes and United States housing data later today could provide the next catalyst for market direction.