Asia Roundup: Euro dips modestly amid subdued holiday trading conditions,Asia stocks rise, Gold climb to record high, Oil rises slightly-December 26th,2025

Market Roundup

• Japan Tokyo Core CPI (YoY) (Dec): 2.3%, 2.5% forecast, 2.8% previous

•Japan CPI Tokyo Ex Food and Energy (MoM) (Dec): -0.1%, 0.1% previous

•Japan CPI (YoY) (Dec): 1.5%, 1.6% previous

•Japan Unemployment Rate (Nov): 2.6%, 2.6% forecast, 2.6% previous

•Japan Jobs/Applications Ratio (Nov): 1.18, 1.18 forecast, 1.18 previous

•Japan Tokyo CPI (YoY) (Dec): 2.0%, 2.7% previous

•Japan Industrial Production (MoM) (Nov): -2.6%, -1.9% forecast, 1.5% previous

•Japan Retail Sales (YoY) (Nov): 1.0%, 0.9% forecast, 1.7% previous

•Japan Large Scale Retail Sales (YoY) (Nov): 5.0%, 5.0% previous

•Japan Industrial Production Forecast 1m Ahead (MoM) (Dec): 1.3%, -1.2% previous

•Japan Industrial Production Forecast 2m Ahead (MoM) (Jan): 8.0%, -2.0% previous

•Japan Large Retailers’ Sales (MoM) (Nov): 0.6%, 1.6% previous

Looking Ahead Economic Data (GMT) 

•No Data Ahead

Looking Ahead Events And Other Releases (GMT)  

•No Events Ahead

Currency Forecast

EUR/USD : The euro edged lower against dollar on Friday  as investors focused on when the U.S. Federal Reserve might further cut interest rates and by how much, with traders pricing in at least two cuts in 2026, although they do not expect the Fed to move before June.The central bank itself has projected one more cut next year but a divided Fed has left investors on edge about the U.S. policy outlook.Investors are also waiting for President Donald Trump to nominate a Fed chair to replace Jerome Powell, whose term ends in May, and any inkling of Trump's decision could 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 edged lower  against dollar on   Friday as investors moved to the sidelines ahead of the holiday period. With few fresh catalysts on offer, trading conditions remain thin, though broader market sentiment continues to favor U.S. dollar through the holiday period. The dollar index, which measures the dollar against six rivals, was poised for a 0.8% drop for the week, its weakest weekly performance since July. It was steady at 97.935 in Asian hours on Friday. On the geopolitical front, the U.S. is focusing on enforcing a "quarantine" of Venezuelan oil for the next two months. On Thursday, it struck Islamic State militants in northwest Nigeria over attacks on local Christian communities. 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 Friday  as optimism around a potential RBA rate hike in 2026 boosted the Australian dollar.Minutes from the RBA’s latest meeting released Tuesday showed policymakers laying the groundwork for a rate hike if inflation fails to ease as expected, underscoring the significance of the Q4 CPI data due on January 28.According to analysts, an upside surprise in Q4 core inflation could trigger a rate increase at the RBA’s February policy meeting.The RBA’s first policy meeting of the year is scheduled for February 3, with markets pricing in a 28% chance of a 25-basis-point hike to the 3.6% cash rate.   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 edged higher on Friday as investors digested Tokyo core consumer price index data.Tokyo’s core consumer inflation slowed in December, driven by softer food prices, yet stayed above the central bank’s 2% target, supporting expectations of additional interest rate increases.The figures reinforced the BoJ’s outlook that core inflation will temporarily slip under its 2% target as cost pressures fade, before returning to a demand-led uptrend that could support further tightening.Tokyo’s core CPI, which strips out volatile fresh food prices, rose 2.3% year-on-year in December, undershooting forecasts of a 2.5% gain and easing from 2.8% in November. 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

Asian stocks climbed to a six-week high on Friday, while a blistering rally in precious metals showed no sign of easing as investors looked to finish the year on a strong note, with a softer yen keeping intervention risks in focus.

China’s A50  up 0.05%,Japan’s Nikkei 225 was up 0.62%,South Korea’s KOSPI was up  0.51%

Commodities Recap

Gold and silver climbed to record highs on Friday, driven by safe-haven demand and increased bets of further U.S. interest rate cuts next year, while precious metals platinum and palladium were on the upswing as well.

Spot gold   0.5% to $4,502.75 per ounce, as of 0225 GMT, after hitting a record high at $4,530.60 earlier in the session. U.S. gold futures   for February delivery climbed 0.7% to a record high of $4,533.60 per ounce.

Crude prices posted slight increases on Friday following intensified U.S. measures against Venezuelan oil exports and coordinated airstrikes on Islamic State militants in Nigeria’s Sokoto state.

Brent crude futures   rose 5 cents, or 0.1%, to $62.29 per barrel by 0606 GMT. U.S. West Texas Intermediate (WTI) crude  was up 6 cents at $58.41.