USD recovery remains fragile as tariffs and economic risks mount – BBH

EUR/USD trades around a flatline below 1.1800 in European trading on Tuesday. The pair lacks any trading impetus as the US Dollar moves little amid market caution ahead of the Fed's December Meeting Minutes release, which could offer insights into the Federal Reserve’s 2026 outlook.

GBP/USD finds fresh demand and retakes 1.3500 on Tuesday as markets grind through the last trading week of the year. Despite the latest uptick, the pair is unlikely to see further progress due to the year-end holiday volumes.

Gold holds the rebound near $4,350 in the European trading hours on Tuesday. The precious metal recovers some lost ground after falling 4.5% in the previous session, which was Gold's largest single-day loss since October. Increased margin requirements on gold and silver futures by the Chicago Mercantile Exchange Group, one of the world’s largest trading floors for commodities, prompted widespread profit-taking and portfolio rebalancing.

Tron (TRX) trades above $0.2800 at press time on Monday, hovering below the 50-day Exponential Moving Average (EMA) at $0.2859.

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).