Forex Today: US Dollar rebounds to wrap up 2025
Here is what you need to know on Wednesday, December 31:
The US Dollar (USD) Index extends its recovery heading toward the end of the year and trades at a fresh nine-day high above 98.30 on Wednesday. The US Department of Labor will publish the weekly Initial Jobless Claims data later in the day. The New York Stock Exchange and the Nasdaq will operate on a regular schedule on New Year's Eve but the US bond markets will close early. Both markets will be closed on January 1.
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.31% | 0.22% | 0.03% | 0.31% | 0.20% | 1.00% | 0.59% | |
| EUR | -0.31% | -0.08% | -0.28% | 0.00% | -0.11% | 0.69% | 0.28% | |
| GBP | -0.22% | 0.08% | -0.02% | 0.09% | -0.02% | 0.78% | 0.37% | |
| JPY | -0.03% | 0.28% | 0.02% | 0.27% | 0.18% | 0.96% | 0.57% | |
| CAD | -0.31% | 0.00% | -0.09% | -0.27% | -0.05% | 0.71% | 0.28% | |
| AUD | -0.20% | 0.11% | 0.02% | -0.18% | 0.05% | 0.80% | 0.38% | |
| NZD | -1.00% | -0.69% | -0.78% | -0.96% | -0.71% | -0.80% | -0.41% | |
| CHF | -0.59% | -0.28% | -0.37% | -0.57% | -0.28% | -0.38% | 0.41% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
The Federal Open Market Committee (FOMC) released the Minutes of the December meeting late Tuesday. The document showed that most participants are willing to deliver additional rate cuts if inflation declines over time. "Some of those who supported cutting rates indicated the decision was finely balanced, or they could have supported leaving rates unchanged," the publication read. After staying quiet on Monday, the USD Index gained about 0.2% on Tuesday.
Following Monday's sharp decline, Gold staged a correction on Tuesday but met resistance near $4,400 to end the day flat. XAU/USD struggles to find direction early Wednesday and fluctuates above $4,300. Nevertheless, Gold remains on track to end the fifth consecutive month in positive territory.
Silver comes under renewed bearish pressure and declines toward $70, losing more than 5% on Wednesday. XAG/USD is still up nearly 28% in December and about 150% for the year.
EUR/USD continues to edge lower after closing in the red on Tuesday and trades below 1.1750 in the European session on Wednesday. The pair is up 13% year-to-date.
GBP/USD stays relatively quiet near 1.3450 after losing more than 0.3% on Tuesday. The pair remains on track to end the year with a gain of about 7%.
USD/JPY clings to small recovery gains above 156.50 in the European morning on Wednesday. The pair is virtually unchanged on a yearly basis.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
