America’s Roundup: Dollar recovers modestly in thin holiday trading ,Wall Street ends higher, Gold takes a breather after record rally, Oil settles marginally lower

Market Roundup

• US Initial Jobless Claims  214K, 224K forecast,  224K previous

• US Continuing Jobless Claims  1,923K, 1,885K previous

• US Jobless Claims 4-Week Avg.  216.75K, 217.50K previous

• US 4-Week Bill Auction  3.570%, 3.580% previous

• US 8-Week Bill Auction  3.585%, 3.585% previous

Looking Ahead Economic Data (GMT) 

• 23:50 Japan Foreign Bonds Buying  356.4B previous

• 23:50 Japan Foreign Investments in Japanese Stocks   528.3B previous

Currency Summaries

EUR/USD : The euro edged lower on Wednesday in thin, holiday-shortened Christmas Eve trade. Investor focus remains on U.S. monetary policy, with markets expecting the next Federal Reserve chair to take a dovish stance. The dollar has endured a volatile year, pressured by President Donald Trump’s tariff policies and growing concerns over the Fed’s independence. Despite the pullback, the euro is up just over 14% this year, its strongest annual performance since 2003. Meanwhile, the ECB left rates unchanged last week and raised some growth and inflation forecasts, a move that likely limits scope for further easing in the near term.  Immediate resistance can be seen at 1.1793(23.6%fib), an upside break can trigger rise towards 1.1828(Higher BB).On the downside, immediate support is seen at 1.1731(38.2%fib), a break below could take the pair towards 1.1680(50%fib).

GBP/USD:  The pound eased slightly on Wednesday as investors wound down some positions in   Christmas Eve session. Market activity remained subdued as many participants were away, leaving sterling largely influenced by last week’s Bank of England meeting. The BoE cut interest rates in a narrow vote but indicated that the pace of future reductions could slow.  Sterling briefly inched up to as high as $1.35335 in early trading, its highest since mid-September, though was last flat on the day just below that level. The dollar index , which measures it against a basket of other currencies, including the yen and the euro, rose 0.07% to 97.96. Sterling weakened 0.13% to $1.3498. Immediate resistance can be seen at 1.3499(23.6%fib), an upside break can trigger rise towards 1.3529(Higher BB).On the downside, immediate support is seen at 1.3405 (38.2%fib), a break below could take the pair towards 1.3338(50%fib).

USD/CAD: The Canadian dollar strengthened against the U.S. dollar on Wednesday as gains in commodities continue to lift the Canadian dollar. Oil prices were steady in early trade, with Brent crude up 0.1% at $62.45 a barrel, but still on track for a third consecutive annual decline of 16%.On the data front, Canada’s economy contracted 0.3% in October, marking its largest decline in nearly three years, before a slight 0.1% rebound in November, surpassing forecasts. Markets spent the session absorbing the last major economic data ahead of the holiday period. On the monetary policy front, Money markets are predicting the Bank's next move will be a 25 basis point hike, most likely in October 2026. Immediate resistance can be seen at 1.3720 (38.2%fib), an upside break can trigger rise towards 1.3753(Dec 23rd high).On the downside, immediate support is seen at 1.3630(Lower BB), a break below could take the pair towards 1.3558(23.6%fib).

USD/JPY: The U.S. dollar dipped against yen on  Wednesday as traders focused on whether weakness in the Japanese currency will prompt officials in the country to intervene..The yen has weakened despite the Bank of Japan delivering a long-anticipated rate hike last Friday. The increase had been well-telegraphed and comments from Governor Kazuo Ueda disappointed some in the market who had bet on a more hawkish tone.That has left investors vigilant to official yen-buying from Tokyo, particularly as trading volumes thin towards the year-end, which analysts say is an opportune time for authorities to take action .Finance Minister Satsuki Katayama said on Tuesday that Japan has a free hand in dealing with excessive yen moves, issuing the strongest warning to date on Tokyo's readiness to intervene. The Japanese currency was last up 0.25% on the day against the U.S. dollar at 155.84 per dollar. Immediate resistance can be seen at 157.30(Higher BB) an upside break can trigger rise towards 158.00(Psychological level) .On the downside, immediate support is seen at  155.64 (38.2%fib)  a break below could take the pair towards 155.51 (50%fib).

Equities Recap

 European equities finished the shortened trading week near record highs, on course for their best annual showing since 2021, as falling rates, German fiscal stimulus, and portfolio diversification supported markets.

UK's benchmark FTSE 100 closed down by 0.19 percent, Germany's Dax ended up by 0.23 percent, France’s CAC finished the day up by 0.00 percent.

U.S. stocks finished higher on Wednesday, with the Dow and S&P 500 closing at record highs in a broad rally during the holiday-shortened session.

Dow Jones closed down  by 0.60 % percent, S&P 500 closed up by 0.32 % percent, Nasdaq settled up by 0.22%  percent.

Commodities Recap

Oil closed slightly lower Wednesday, heading for its biggest annual drop since 2020 amid concerns over U.S. economic growth and supply risks from Venezuela and Russia.

Brent crude futures closed down 14 cents, or 0.2%, at $62.24 a barrel, while U.S. West Texas Intermediate crude eased 3 cents, or 0.05%, to $58.29.

Gold slipped slightly on Wednesday, pausing after climbing above $4,500 an ounce earlier, while silver and platinum eased back after hitting record highs.

Spot gold slipped 0.2% to $4,479.38 an ounce by 18:57 GMT, retreating from a record high of $4,525.18 earlier in the session, while U.S. February gold futures settled 0.1% lower at $4,502.8.