US Dollar Ends Strong

Dollar Index Climbs Toward Nine‑Day High

US Dollar rebounds to wrap up 2025

The US Dollar Index (DXY) extends its recovery on Wednesday, December 31, trading at a fresh nine-day high above 98.30 as markets prepare to close out the year.

While the New York Stock Exchange and Nasdaq will operate on a regular schedule for New Year’s Eve, the US bond markets will close early. All markets will remain closed on January 1.

Weekly Performance: USD strongest against NZD

The US Dollar posted solid gains this week, especially against the New Zealand Dollar (NZD), as shown in the table below:

Base: USD EUR GBP JPY CAD AUD NZD CHF

Change % +0.31% +0.22% +0.03% +0.31% +0.20% +1.00% +0.59%

This performance reflects broad resilience in the US Dollar heading into 2026, supported by cautious optimism around monetary policy and labor market data.

FOMC Minutes: Rate cuts remain on the table

The Federal Open Market Committee (FOMC) released the minutes of its December 9–10 meeting late Tuesday.

Most participants expressed willingness to deliver additional rate cuts if inflation continues to decline.

Some officials noted that the decision to cut rates was “finely balanced,” and could have supported holding rates steady.

The US Dollar Index gained about 0.2% on Tuesday following a quiet Monday session, suggesting that traders are pricing in a flexible policy stance heading into the new year.

Metals Market: Gold and Silver diverge

Gold (XAU/USD)

Gold staged a mild recovery on Tuesday after Monday’s sharp decline but met resistance near $4,400, ending the day flat.

Early Wednesday, XAU/USD fluctuates above $4,300, struggling for direction.

Still, gold is on track to close its fifth consecutive month in positive territory, supported by safe-haven demand and rate cut expectations.

Silver (XAG/USD)

Silver faces renewed bearish pressure, falling toward $70 with a 5% intraday loss on Wednesday.

Despite the pullback, XAG/USD remains up 28% in December and nearly 150% year-to-date, reflecting strong speculative interest and industrial demand.

Major Pairs: Year-end consolidation

EUR/USD trades below 1.1750, extending Tuesday’s losses. The pair is still up 13% year-to-date.

GBP/USD holds near 1.3450 after a 0.3% drop on Tuesday, poised to end the year with a 7% gain.

USD/JPY trades above 156.50, showing mild recovery. The pair is virtually unchanged for the year.

Outlook: Dollar strength, thin volumes, cautious tone

As 2025 comes to a close, the US Dollar shows signs of strength amid thin trading volumes and mixed sentiment.

Markets await the weekly Initial Jobless Claims report, expected to show a modest rise to 220,000.

The President of the United States is expected to announce the next Federal Reserve Chair in January — a decision that could shape monetary policy expectations for 2026.

With gold consolidating, silver correcting, and the US Dollar rebounding, the final trading day of the year sets the stage for a volatile start to 2026.