In less than 24 hours, the FOMC meets to release many potentially significant market moving announcements. Merlin takes a look at the releases and offers words of advice on how to trade them. He also takes a look at the Dollar, Euro, Pound and other currencies which will be impacted by the announcements.
Editors’ Picks
EUR/USD steadies near 1.1650 ahead of US Nonfarm Payrolls
EUR/USD holds ground after five days of losses, trading around 1.1650 during the Asian hours on Friday. Traders remain cautious ahead of the US Nonfarm Payrolls report, which is expected to offer further insight into labor market conditions and the Federal Reserve’s policy outlook. December NFP is forecast to show job gains of 60,000, down from 64,000 in November.
GBP/USD: Further weakness could challenge 1.3400
GBP/USD remains under unabated selling pressure on Thursday, slipping to fresh three-day lows around 1.3415 in response to further improvement in the sentiment surrounding the Greenback ahead of Friday’s key NFP data.
USD/JPY rises back above 157.00 on China-Japan trade row
USD/JPY is hovering near the top end of its weekly range, above 157.00 early Friday. The pair cheers renewed US Dollar demand ahead of the US Nonfarm Payrolls data. Meanwhile, the intensifying China-Japan trade row over rare-earth exports weighs negatively on the Japanese Yen, adding to the pair's upside.
Editors’ Picks
AUD/USD eases below 0.6700 after mixed China's inflation data
AUD/USD is facing fresh selling pressure, easing below 0.6700 in the Asian session on Friday. after the release of mixed inflation figures from China. The focus now remains on the US NFP report, which will influence the Fed's rate-cut path and drive the US Dollar, eventually impactintg the major.
USD/JPY rises back above 157.00 on China-Japan trade row
USD/JPY is hovering near the top end of its weekly range, above 157.00 early Friday. The pair cheers renewed US Dollar demand ahead of the US Nonfarm Payrolls data. Meanwhile, the intensifying China-Japan trade row over rare-earth exports weighs negatively on the Japanese Yen, adding to the pair's upside.
Gold eyes US NFP, Supreme Court ruling for the next big move
Gold is battling a critical resistance just under the $4,500 threshold early Friday, having closed well above the $4,450 barrier on Wednesday. The next big in Gold now hinges on the US Nonfarm Payrolls data and the Supreme Court ruling on President Donald Trump’s tariff powers.
Forecasts for Payrolls are all over the place
Yesterday’s data put the kybosh on the idea the Fed needs to cut rates fairly urgently to protect the labor market. The jobs component of the ISM services index was nicely over 50, and that rising JOLTS voluntary quits rate also points to no real heartache in labor.
2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet
Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.
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