Forex Daily Forecast, Analysis and Prediction

Gold dropped rather quickly during the trading session on Monday, as it looks like the chaos in the silver market is starting to influence what is going on over here as well.

The Euro pulled back a bit during the trading session on Monday against the Japanese yen, as we continue to see a lot of noisy overall trading behavior.

The British pound has been pretty choppy during the Monday session as we continue to hover around the 1.35 level.

The light sweet crude oil market continues to see a lot of volatility on Monday, as we have in fact gapped to the upside and then rallied a bit, but we are already starting to see some of the strength leave the market.

The GBP/USD pair was flat at the crucial resistance level at 1.3500 as investors waited for the upcoming Federal Reserve minutes of the last monetary policy meeting. It has risen by nearly 4% from its lowest point in November as the US dollar sell-off continued.

The EUR/USD exchange rate pulled back slightly as market risks rose in the final week of the year. It dropped slightly to 1.1758, down from this month's high of 1.1817, as traders eye the upcoming Federal Reserve minutes.

Bitcoin price remained in a tight range, where it has been stuck at in the past few weeks. The BTC/USD pair was trading at 87,145 on Tuesday morning, down sharply from the year-to-date high of 126,200.

Gold remains firmly in bullish territory near all-time highs, supported by US dollar weakness, rising geopolitical risks, and expectations of future Fed rate cuts.

The euro is consolidating near the 1.18 level against the US dollar as traders position for Fed rate cuts in 2026 amid thin holiday liquidity.

The DAX is nearing a decisive technical zone, with a potential breakout above 24,750 or a continued consolidation shaping the early 2026 outlook.

GBP/USD is at a critical inflection point near 1.35, with traders watching for either a deeper pullback or a bullish breakout in the coming weeks.

Silver extends its parabolic rally amid low liquidity, with strong demand intact but growing risks of sharp corrective pullbacks.

Bitcoin struggles to gain momentum in low-liquidity trading, with sellers capping rallies as traders await clearer direction into January.

The NASDAQ 100 drifts higher in low-volume trading, with pullbacks viewed as buying opportunities ahead of a potentially strong 2026.

USD/JPY remains range-bound in thin holiday conditions, with buyers defending support near the 50-day EMA and upside targets toward 158 yen.