FX Today: Fed Minutes in focus as USD stabilizes, Gold slips
Here’s what you need to know on Tuesday, December 30th:
This week's highlight will be the release of the minutes of the Federal Reserve's (Fed) December meeting, in which the central bank decided to cut its benchmark rate by 25 basis points and signalled another rate cut in 2026.
USD Index (DXY): The US Dollar (USD) remains little changed, trading near the 98.10 price region, and holding its position on Monday. Investors continue to price in the prospect of further rate cuts by the Federal Reserve (Fed) in 2026, following the 25-basis-point rate cut delivered at the December meeting, which brought the target range to 3.50%-3.75%.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.14% | 0.07% | -0.19% | 0.14% | 0.35% | 0.53% | 0.19% | |
| EUR | -0.14% | -0.07% | -0.33% | 0.00% | 0.22% | 0.39% | 0.05% | |
| GBP | -0.07% | 0.07% | -0.25% | 0.08% | 0.28% | 0.46% | 0.12% | |
| JPY | 0.19% | 0.33% | 0.25% | 0.31% | 0.54% | 0.73% | 0.32% | |
| CAD | -0.14% | -0.01% | -0.08% | -0.31% | 0.21% | 0.42% | 0.05% | |
| AUD | -0.35% | -0.22% | -0.28% | -0.54% | -0.21% | 0.18% | -0.16% | |
| NZD | -0.53% | -0.39% | -0.46% | -0.73% | -0.42% | -0.18% | -0.34% | |
| CHF | -0.19% | -0.05% | -0.12% | -0.32% | -0.05% | 0.16% | 0.34% |
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).
Market focus now turns to the release of the Federal Open Market Committee (FOMC) Minutes, due on Tuesday, which could provide further insight into internal policy debates and the outlook for the coming year. According to the CME FedWatch tool, the probability of rates being left unchanged at the January meeting remains high, while expectations of an immediate rate cut continue to fade.
Gold: XAU/USD drops sharply on Monday, down 4.50% and trading near the $4,330 level after hitting an all-time high at the end of last week. The precious metal is facing strong profit-taking amid thin liquidity ahead of the year-end holidays, which is amplifying the corrective move following the sharp rally seen in recent months.
GBP/USD: The pair trades near the 1.3490 price region on Monday, as investors remain cautious ahead of year-end and the holiday period, despite expectations surrounding the Bank of England’s (BoE) monetary policy stance. Inflation in the United Kingdom (UK) remains well above the 2% target. Although price pressures have eased in recent months, annual inflation slowed to 3.2% in November after peaking at 3.8% between July and September, limiting the central bank’s room for maneuver.
EUR/USD is trading near the 1.1750 price region, trimming part of its losses and breaking its three-day losing streak on Monday. The US Dollar strengthens as investors consider the true implications of the Trump-Zelenskyy meeting, while tensions between China and Taiwan increase.
USD/JPY: The minutes from the Bank of Japan’s (BoJ) Monetary Policy Meeting, which were reviewed during Monday’s Asian session, have the pair trading near the 156.20 price region. BoJ policymakers noted that interest rates are still far from neutral. However, some members advised proceeding with caution to avoid undesirable consequences for the economy and financial markets.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Author
Agustin Wazne
FXStreet
Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.
