America’s Roundup: Dollar recovers slightly in thin trading, Wall Street closes near record high, Silver rises 9% ,Oil dips by 2%

Market Roundup

•US indexes close marginally lower but near record peaks

•Gold and silver smash records on rate cut expectations, geopolitics

•Yen softens on persistent intervention worries

• All precious metals headed for weekly gains

•Japan proposes record spending, curbs debt issuance

•Fed funds futures traders expect rate cuts next year

Looking Ahead Economic Data (GMT)

• No Data Ahead

Looking Ahead Events And Other Releases (GMT)  

•No Events Ahead

Currency Summaries

EUR/USD The euro dipped on Friday as dollar recovered some ground  in muted post-Christmas trading session. Investors focused on when the U.S. Federal Reserve might further cut interest rates and by how much. Traders are pricing in at least two rate cuts in 2026, though they do not expect the Fed to move before June.The central bank itself has projected one additional cut next year, but a divided Fed has kept investors on edge about the U.S. policy outlook. Markets are also awaiting President Donald Trump’s nomination of a new Fed chair to replace Jerome Powell, whose term ends in May, with any signal of Trump’s decision likely to sway markets in the coming week. 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:  Sterling slipped on Friday as the dollar regained some ground during a thin, holiday-shortened session. Despite the rebound, the US Dollar remains under pressure, with markets pricing in further Fed easing in 2026. Markets broadly expect the Fed to keep interest rates unchanged at its January meeting, with the CME FedWatch Tool showing only a 13% probability of a rate cut. The dollar index  , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.01% to 98.04. Sterling   fell 0.22% to $1.349. 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 firmed against the U.S. dollar on Friday  as  growing divergence in monetary policy between the BoC and the Fed is underpinned the Canadian dollar. Canada ‘s Gross Domestic Product (GDP) data released on Tuesday did little to shift sentiment around USD/CAD.The Bank of Canada kept its benchmark rate at 2.25% in December, indicating that current policy settings are well calibrated to support the economy and maintain inflation close to target.In contrast, expectations are that the Fed will proceed more cautiously, with markets pricing in further easing next year following 75 bps of rate cuts already delivered this year. The loonie was trading 0.2% higher at C$1.3651 to the greenback. Immediate resistance can be seen at 1.3714 (38.2%fib), an upside break can trigger rise towards 1.3755 (Dec 24th high).On the downside, immediate support is seen at 1.3626(Lower BB), a break below could take the pair towards 1.3576 (23.6%fib).

USD/JPY: The dollar firmed against Japanese yen on Friday as investors remained on watch for potential intervention to shore up the currency. Analysts say year-end trading, when volumes are thin, provides an opportunity for authorities to take action.The yen has weakened despite the Bank of Japan delivering a well-telegraphed interest rate hike last week. Data on Friday showed that core consumer inflation in Japan's capital slowed in December but stayed above the central bank's 2% target, bolstering the case for further rate hikes. 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

U.S. stock indexes hovered near record highs on Friday in quiet post-Christmas trading, as expectations of Fed rate cuts and safe-haven demand drove precious metals to record levels.

Dow Jones closed down  by 0.04 % percent, S&P 500 closed down  by 0.03 % percent, Nasdaq settled down by 0.09%  percent.

Commodities Recap

Oil slipped more than 2% on Friday amid worries about a global oversupply, with attention also on potential peace negotiations in Ukraine this weekend.

Brent crude futures settled down $1.60 or 2.57% to $60.64 per barrel. U.S. West Texas Intermediate (WTI) crude settled down $1.61 or 2.76% to $56.74.

Silver surged 9% on Friday, reaching a record high, supported by a combination of market deficits and rising industrial demand.

The white metal was at a record high of $78.53 an ounce. Other precious metals also gained on Friday, with spot gold   at an all-time-high of $4,549.71/oz and platinum at a record high of $2,454.12/oz after a 10% climb.