Forex News
- Silver price gains ground amid expectations of two more Fed rate cuts in 2026.
- The demand for dollar-denominated Silver strengthened amid a softer US Dollar.
- The safe-haven metal remains supported amid elevated geopolitical tensions.
Silver price (XAG/USD) rises to near $74.10 per troy ounce during the early European hours on Friday. The price of the grey metal surged 148% in 2025, breaking key levels amid its designation as a critical US mineral, tight supply, low stockpiles, and rising industrial and investment demand.
The non-interest-bearing Silver attracts buyers due to dovish sentiment surrounding the Fed policy outlook. Lower interest rates could reduce the opportunity cost of holding Silver. Traders expect the Federal Reserve (Fed) to deliver two more rate cuts in 2026.
Additionally, Silver prices find support as a softer US Dollar (USD) makes the dollar-denominated metal cheaper for foreign buyers. Markets are bracing for US President Donald Trump to nominate a new Fed chair to replace Jerome Powell when his term ends in May, a move that could tilt monetary policy toward lower interest rates.
The safe-haven metals, including Silver receive support amid heightened geopolitical tensions, fueled by recent exchanges of accusations between Russia and Ukraine over civilian attacks on New Year’s Day and persistent US–Venezuela friction.
Silver gains ground amid a surge in speculative demand in China, driving Shanghai Futures Exchange premiums to record highs. These elevated premiums reflect strong local demand and have tightened global supply chains, echoing earlier inventory squeezes in London and New York vaults.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Here is what you need to know on Friday, January 2:
Financial markets remain in holiday mood as the first trading day of the new year gets underway. The economic calendar will not offer any high-tier data releases on Friday and trading volumes could remain thin heading into the weekend.
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.24% | 0.18% | 0.27% | 0.37% | 0.10% | 1.23% | 0.56% | |
| EUR | -0.24% | -0.06% | 0.04% | 0.14% | -0.14% | 0.99% | 0.33% | |
| GBP | -0.18% | 0.06% | 0.25% | 0.20% | -0.08% | 1.05% | 0.39% | |
| JPY | -0.27% | -0.04% | -0.25% | 0.12% | -0.16% | 0.95% | 0.31% | |
| CAD | -0.37% | -0.14% | -0.20% | -0.12% | -0.23% | 0.86% | 0.19% | |
| AUD | -0.10% | 0.14% | 0.08% | 0.16% | 0.23% | 1.13% | 0.47% | |
| NZD | -1.23% | -0.99% | -1.05% | -0.95% | -0.86% | -1.13% | -0.66% | |
| CHF | -0.56% | -0.33% | -0.39% | -0.31% | -0.19% | -0.47% | 0.66% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Following a modest recovery to end 2025, the US Dollar (USD) Index holds its ground in the European morning on Friday and fluctuates in a tight range above 98.00. Meanwhile, US stock index futures rise between 0.3% and 0.7% following the decline seen earlier in the week. On Monday, the Institute for Supply Management (ISM) will publish the Manufacturing Purchasing Managers' Index (PMI) data for December.
Gold registered large losses ahead of the New Year break but managed to regain its traction on Friday. At the time of press, XAU/USD was trading near $4,380, rising more than 1% on a daily basis.
Similarly, XAG/USD stages a decisive rebound toward $74 and gains more than 3% on the day. Still, Silver is down nearly 7% for the week and remains on track to snap a five-week winning streak.
EUR/USD holds steady at around 1.1750 after edging lower in the first half of the week. Sentix Investors Confidence data for January will be featured in the European economic calendar later in the session.
After dropping to its lowest level in over a week and testing 1.3400 on the last day of 2025, GBP/USD reversed its direction and erased a large portion of its weekly losses. The pair stays relatively calm early Friday and trades above 1.3450.
Following Monday's decline, USD/JPY closed in positive territory for two consecutive days. The pair continues to stretch higher and trades near 157.00 early Friday.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
- Gold price extends its upside to around $4,375 in Friday’s early European session, up 1.30% on the day.
- The prospect of a US rate cut in 2026 and geopolitical tensions lift the Gold price.
- Increased margin requirements on gold and silver futures by the CME Group might cap the upside for precious metals.
Gold price (XAU/USD) extends the rally to near $4,375 during the early European session on Friday. The rally in the precious metal is supported by the growing expectations of further interest rate cuts from the US Federal Reserve (Fed) and safe-haven demand. Traders await the release of the US economic data this month to gauge the path of interest rates. The US December Nonfarm Payrolls (NFP) report will be in the spotlight next week.
The Fed delivered the interest rate by a quarter point at its December policy meeting, bringing the federal funds rate to a target range of 3.50%–3.75%. Most Fed officials saw further interest-rate reductions as appropriate so long as inflation declines over time, though they remained divided over when and how far to cut, the Federal Open Market Committee (FOMC) Minutes showed. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal.
Furthermore, geopolitical risks could boost a traditional asset such as Gold, as it can preserve value during periods of uncertainty. Last week, Russia accused Ukraine of launching a drone strike on the Russian presidential residence in northern Russia, prompting Moscow to reconsider its stance in peace negotiations, per Reuters. Ukraine dismissed Russian statements about the drone attack, and its foreign minister said Moscow was seeking "false justifications" for further strikes against its neighbor.
Nonetheless, the upside for the yellow metal might be limited as traders could book their profits or rebalance their portfolios. The Chicago Mercantile Exchange (CME) Group, one of the world’s largest trading floors for commodities, raised margin requirements for gold, silver, and other metals. These notices require traders to put up more cash on their bets in order to insure against the possibility that the trader will default when they take delivery of the contract.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
- GBP/USD may test the three-month high of 1.3534.
- The 14-day Relative Strength Index 62.76 signals bullish momentum.
- The immediate support lies at the nine-day EMA at 1.3468.
GBP/USD edges higher on the first day of the year, trading around 1.3470 during the Asian hours on Friday. The technical analysis of the daily chart indicates a weakening of a bullish bias as the pair remains slightly below the lower boundary of the ascending channel pattern.
The nine-day Exponential Moving Average (EMA) rises and stands above the 50-day EMA, with spot holding over both and maintaining a bullish bias. The 50-day EMA slope is positive, supporting the uptrend. Short-term trend dynamics remain supportive as the nine-day EMA continues to lead the 50-day EMA, and price respects the former on pullbacks. The moving average configuration would keep the topside favored while the medium-term average edges higher.
The 14-day Relative Strength Index (RSI) at 62.76 (bullish) confirms firm momentum without overbought conditions. RSI around 62.76 stays above its midline, reinforcing bullish bias and leaving scope for further gains.
A return to the ascending channel would support the GBP/USD pair to test the three-month high of 1.3534, reached on December 24. A daily close above this level could open a move toward the six-month high of 1.3726, followed by the upper boundary of the ascending channel around 1.3750.
A failure to rebound within the channel could prompt consolidation, but only a break below the nine- and 50-day EMAs of 1.3468 and 1.3362 supports, respectively, would undermine the short- and medium-term advance. Further declines would put downward pressure on the GBP/USD pair to navigate the region around the eight-month low of 1.3010.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.13% | 0.01% | 0.06% | -0.05% | -0.29% | -0.07% | -0.11% | |
| EUR | 0.13% | 0.00% | 0.18% | 0.08% | -0.22% | 0.06% | 0.02% | |
| GBP | -0.01% | 0.00% | 0.19% | 0.04% | -0.22% | 0.06% | 0.03% | |
| JPY | -0.06% | -0.18% | -0.19% | -0.12% | -0.48% | -0.19% | -0.16% | |
| CAD | 0.05% | -0.08% | -0.04% | 0.12% | -0.28% | -0.04% | -0.05% | |
| AUD | 0.29% | 0.22% | 0.22% | 0.48% | 0.28% | 0.28% | 0.25% | |
| NZD | 0.07% | -0.06% | -0.06% | 0.19% | 0.04% | -0.28% | -0.03% | |
| CHF | 0.11% | -0.02% | -0.03% | 0.16% | 0.05% | -0.25% | 0.03% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
(The technical analysis of this story was written with the help of an AI tool.)
- EUR/USD gains traction to near 1.1755 in Friday’s early European session.
- The major pair keeps the bullish vibe above the key 100-day EMA, with upward RSI momentum.
- The first upside barrier to watch is 1.1820; the initial support level emerges at 1.1655.
The EUR/USD pair trades in positive territory around 1.1755 during the early European trading hours on Friday. The European Central Bank (ECB) kept rates unchanged at its December policy meeting, and its outlook suggested less urgency for further cuts, which has provided some support to the Euro (EUR) against the US Dollar (USD).
ECB President Christine Lagarde emphasized a data-dependent, "meeting-by-meeting" approach. She further stated that the central bank is not pre-committing to any future rate path, though some economists anticipate the rates to remain steady through 2026.
On the USD’s front, anticipation that US President Donald Trump will name a dovish successor to Fed Chair Jerome Powell, whose term ends in May, could drag the Greenback lower and create a tailwind for the major pair. Trump said that he expects the next Fed Chairman to keep interest rates low and never “disagree” with him. The comments are likely to heighten worries among investors and policymakers about Fed independence.
Technical Analysis:
In the daily chart, EUR/USD trades at 1.1755. The 100-day EMA slopes higher at 1.1635, and price holds above it, preserving the medium-term bullish bias. RSI rises to 59.8, confirming improving momentum without overbought conditions. Holding above the EMA would keep the upside path intact.
Price sits above the Bollinger middle band at 1.1738, while the bands narrow, signaling reduced volatility after the recent recovery. The upper band at 1.1820 caps the topside for now, and a daily close above it could extend gains; a drop back under the middle band would expose the lower band near 1.1655. Overall, momentum and trend signals favor buying dips until volatility expands.
(The technical analysis of this story was written with the help of an AI tool)
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
- USD/CHF falls as the US Dollar weakens on more Fed rate cuts in 2026.
- President Trump is expected to announce a nominee for Fed chair later in January.
- The safe-haven Swiss Franc remains supported amid elevated geopolitical tensions.
USD/CHF loses ground as the US Dollar (USD) weakens over expectations of two more Federal Reserve rate cuts in 2026. The pair is trading around 0.7920 during the Asian hours on Friday. The Fed delivered a 25-basis-point (bps) interest rate cut at the December 2025 meeting, bringing the target range to 3.50%–3.75%. The US central bank reduced a cumulative 75 bps of rate cuts in 2025 amid a cooling labor market and still-elevated inflation.
Markets are awaiting US President Donald Trump’s nomination of a new Fed chair to succeed Jerome Powell when his term ends in May, a move that could steer monetary policy toward lower interest rates. President Trump said earlier this week that the announcement would come “sometime in January.” National Economic Council Director Kevin Hassett is viewed as the frontrunner, though Trump has also shown interest in former Fed Governor Kevin Warsh. Other reported contenders include current Fed Governors Christopher Waller and Michelle Bowman, as well as BlackRock’s Rick Rieder.
However, the Federal Open Market Committee’s December Meeting Minutes suggested a divided policy outlook. Most participants felt it would likely be appropriate to pause further rate cuts if inflation continues to ease, while some officials argued for keeping rates unchanged for a period following three cuts in 2025 aimed at supporting a weakening labor market.
The USD/CHF pair edges higher as the safe-haven Swiss Franc (CHF) finds support amid heightened geopolitical tensions, fueled by recent exchanges of accusations between Russia and Ukraine over civilian attacks on New Year’s Day and persistent US–Venezuela friction.
Switzerland’s KOF Economic Indicator rose by 1.7 points to 103.4 in December, reaching its highest level since September 2024 and exceeding market expectations of 101.4. The improvement was most pronounced on the production side, with manufacturing-related indicators pointing to a more favorable outlook.
Swiss Franc FAQs
The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.
The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.
The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.
As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.
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