Forex Daily Forecast, Analysis and Prediction

The AUD/USD exchange rate held steady at its highest point since July 2023 as hopes of a Fed and RBA divergence continued.

The euro has a chance to end 2023 above the $1.10 level, which seemed completely off the table just a few weeks ago when the dollar was regaining strength and bets on European Central Bank rate cuts were rising sharply.

The recent improvement in morale that the US Central Bank will stop tightening its policy during the year 2024 weakened the price of the dollar and gave the price of the pound against the US dollar GBP/USD positive momentum to move higher with recent gains that reached the resistance level of 1.2795.

The long-awaited shift in policy direction by the Bank of Japan (BoJ) towards tightening has helped the Japanese yen to achieve strong gains against other major currencies, especially the dollar.

The weakness of the US dollar continues to support the strong upward rebound of the gold price XAU/USD, with it holding on to the psychological resistance level of $2,000 per ounce.

The USD/ZAR has drifted higher in Forex since Thursday of last week, but this has happened as trading volumes have dropped significantly and market action is light.

The USD/MXN has tracked lower and is near important mid-term support ratios which will get speculative attention, but trading today will be light and perhaps dangerous.

The USD/TRY rose during early trading on Tuesday, as the pair reached its highest level ever.

The AUD/USD experienced an initial pullback during Friday's session but then quickly reversed course, displaying signs of vitality.

Crude oil markets demonstrated renewed vigor during Friday's trading session, signaling potential upward movements that traders continue to explore.

Natural gas markets experienced a minor retreat during Friday's trading session, as they navigate the holiday season while hovering around the $2.50 level.

The S&P 500 index exhibited a marginal rally during Friday's trading session as the holiday season approached.

The trading session on Friday saw minimal activity for the USD/JPY, as it continued to hover around the crucial ¥142 level.

Silver displayed a back-and-forth trading pattern during Friday's session, reflecting a certain degree of caution prevailing in the market as the holiday season approaches.

Gold demonstrated notable strength on Friday, as it surged above the $2,050 level, signaling a potential for further gains.