Forex Today: An imminent Brexit deal adds to the X-mas eve cheer

Dhwani Mehta FXStreet

Here is what you need to know on Thursday, December 24:

Brexit: Markets eye a Brexit breakthrough on X-mas eve, awaiting a joint conference likely to be held by the UK PM Boris Johnson and EU Chief Ursula von der Leyen at 0800 GMT.

According to media reports, both sides will talk at 0700 GMT before addressing the presser. The discussion over the key contentious issues on fisheries and the level playing field was carried on overnight, with the UK and EU leaders now on the verge of striking a deal.

Most major European markets remain closed amid the Christmas holiday. The sentiment remains upbeat amid the Brexit optimism, weighing on the safe-haven US dollar. GBP/USD held the higher ground around 1.3550, consolidating Wednesday’s rally. Holiday-thinned markets could trigger unusual FX volatility.

US Stimulus: Markets have shrugged-off President Donald Trump’s threat to the $900 billion covid relief package. House Speaker Nancy Pelosi agreed with Trump’s view on larger individual checks and said the House would try to pass this proposal on Thursday. Trump said that the $600 payment should be $2,000.

Commodities cheered the risk-on action in the Asian equities. Gold extended gains and tested the $1880 level. WTI consolidated its recovery from weekly lows, holding firmly above the $48 mark.

Cryptocurrency market losses $50 billion in market capitalization as XRP price drops by 50%

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD stays offered just above 1.1400

EUR/USD keeps the downtrend well in place for yet another day, challenging the 1.1400 contention zone on Tuesday. The continuation of the selling impulse in spot comes amid decent gains in the US Dollar, which continues to find support in the persistent effervescence surrounding the US-Iran crisis.

Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP rebounds on rising on-chain activity

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.