Europe Roundup: Pound hovers around multi-month highs, European shares closes near record highs, Gold tops $4500, Oil rises -December 24th,2025

Market Roundup

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Currency Forecast

EUR/USD : The euro edged lower on Wednesday in holiday  shortened Christmas Eve trading on Wednesday. Looking ahead, market observers anticipate the next Federal Reserve chair will adopt a dovish stance, keeping U.S. monetary policy at the forefront of investment consideration .The dollar has had a tumultuous year, whipsawed by President Donald Trump's chaotic tariffs that sparked a crisis of confidence in U.S. assets earlier this year, while his growing influence over the Fed has also raised concerns about its independence. The euro is up just over 14% for the year thus far, putting it on track for its best performance since 2003.The European Central Bank stood pat on rates last week and revised upwards some of its growth and inflation projections, in a move that likely closes the door to 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 hovered near a three-month high versus the dollar and its strongest level in two months against the euro on Wednesday, though trading was light ahead of the Christmas holiday. 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.  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).

AUD/USD: The Australian dollar extended gains on Wednesday as Australian dollar was boosted by growing expectations of higher rates from the Reserve Bank. Minutes from the RBA's last meeting showed the board preparing the ground for a hike should inflation not recede as hoped, highlighting the importance of the fourth-quarter CPI numbers on January 28.The RBA holds its first meeting of the year on February 3 and markets imply a 28% chance of a quarter-point increase in the 3.6% cash rate. Continued gains across commodities also supported the resource-heavy currency with gold and copper hitting records, both of which are major export earners for Australia   Immediate resistance can be seen at 0.6695(23.6%fib), an upside break can trigger rise towards 0.6726(Higher BB).On the downside, immediate support is seen at 0.6654(Daily low), a break below could take the pair towards 0.6609(38.2%fib)

USD/JPY: The U.S. dollar slipped Wednesday after BoJ October minutes indicated potential policy tightening. Officials signaled readiness for a rate hike but sought clarity on wage trends amid U.S. tariff uncertainty. Traders remain focused on the yen, alert to possible intervention by Japanese authorities. Finance Minister Satsuki Katayama warned Japan could act against excessive yen moves, keeping investors watchful, especially as year-end thin trading could favor intervention. Against a basket of currencies, the dollar index fell to a 2-1/2-month low of 97.767. It was on track to lose 9.8% for the year, which would mark its steepest annual drop since 2017.The dollar last down 0.3% on the Japanese currency at 155.83 yen on Wednesday, having fallen 0.5% in the previous session. Immediate resistance can be seen at 157.80(23.6%fib) an upside break can trigger rise towards 158.00(Psychological level) .On the downside, immediate support is seen at  155.91 (SMA 20)  a break below could take the pair towards 155.61 (38.2%fib).

Equities Recap

 European stocks closed the holiday-shortened week near record highs, poised for their best annual gain since 2021, aided by easing rates, Germany’s fiscal stimulus, and a shift away from expensive U.S. tech stocks.

At (GMT 13:38),UK's benchmark FTSE 100 was last trading down  at 0.9 percent, Germany's Dax was up by 0.23 percent, France’s CAC was last down by 0.01 percent.

Commodities Recap

Gold broke above $4,500 an ounce for the first time on Wednesday while silver and platinum also marked new record highs, as safe-haven demand and expectations of further U.S. rate cuts next year fuelled speculative interest in precious metals.

Spot gold   was up 0.2% at $4,494.49 per ounce at 1220 GMT, after marking a record high of $4,525.19 earlier in the session. U.S. gold futures   for February delivery climbed 0.4% to $4,523.10.

Oil prices climbed for a sixth consecutive day on Wednesday, buoyed by strong U.S. economic growth and concerns over supply disruptions from Venezuela and Russia, despite heading for their sharpest annual drop since 2020.

Brent crude futures were up 13 cents, or 0.2%, to $62.51 a barrel at 1425 GMT, while U.S. West Texas Intermediate crude was up 22 cents, or 0.4%, at $58.60.