Investor and FX trader activity remains subdued amid the holiday period. Tomorrow at 21:00 (GMT+2), the minutes of the latest Federal Reserve meeting will be released. Traders are looking for clues on the regulator’s next steps: on December 10, officials cut the interest rate by 25 basis points to the 3.75–3.50% range, announced a resumption of Treasury bond purchases totaling $40.0 billion, and hinted at a possible pause in the easing cycle, noting that clearer signals from the labor market and inflation data are needed. Data released after the meeting showed U.S. consumer inflation easing from 3.0% to 2.7% in November.
Eurozone
The euro is weakening against the yen and the U.S. dollar, while showing mixed dynamics versus the pound.
European investors remain cautious, with low activity likely to persist through the end of the week. Attention is drawn to a report from Germany’s Economic Institute (IW), which indicates that most national business associations expect job losses in 2026 amid an ongoing economic downturn. Industry is expected to suffer most from rising global protectionism and weak export volumes. Among the sectors facing potential contraction are the automotive, paper, and textile industries. Only 11 sector associations expect higher investment next year, while 14 anticipate cuts and 21 foresee stagnation. The defense sector is the only one expected to see a notable expansion.
United Kingdom
The pound is weakening against the yen and the U.S. dollar, while showing mixed performance versus the euro.
A series of key macroeconomic releases is due on Friday. At 09:00 (GMT+2), the UK manufacturing PMI is expected to rise from 50.2 to 51.2 in December, signaling resilience in British industry and supporting hopes for a broader economic recovery. At 11:30 (GMT+2), the Nationwide house price index for December is expected to slow from 0.3% to 0.1% month-on-month and from 1.8% to 1.2% year-on-year, remaining in positive territory. Confirmation of these forecasts could strengthen the case for a pause in monetary easing at the Bank of England, providing support for the pound.
Japan
The yen is strengthening against the euro and the pound, while showing mixed dynamics versus the U.S. dollar.
Investor focus is on the summary of opinions from the Bank of Japan’s latest meeting. According to the document, some policymakers see still-low interest rates as a factor weakening the yen and fueling price pressures, arguing that policy remains far from neutral and should be tightened steadily every few months. Others take a more cautious stance, noting the difficulty of identifying a neutral rate and advocating flexibility and restraint in future policy decisions.
Australia
The Australian dollar is weakening against the euro, pound, yen, and the U.S. dollar.
Investors are assessing recent comments from India’s Commerce Minister Piyush Goyal, who said that under the recently concluded Economic Cooperation and Trade Agreement (ECTA), Australia will eliminate tariffs on all Indian imports from January 1, 2026. The move is expected to significantly boost bilateral trade and support growth in both economies.
Oil
Oil prices have resumed gains on technical factors, even as the fundamental backdrop remains bearish. U.S. President Donald Trump described recent talks with a Ukrainian delegation as successful, confirming that a settlement of the conflict may be approaching. If diplomatic efforts succeed, sanctions on Russia’s energy sector could be lifted, leading to a substantial increase in global supply.
In addition, according to Reuters sources, Saudi Arabia—the world’s largest crude exporter—is expected to cut the price of its flagship Arab Light crude for Asian buyers for a third consecutive month in February.