US Dollar Forecast: DXY Climbs to One-Week High as Position Squaring, Fed Division Fuel Rally.US Dollar climbs to one-week high at 98.31 on year-end positioning. Fed minutes reveal division on 2026 rate cuts despite market pricing two cuts.

Rupee falls 15 paise to 89.90 against US dollar in early trade.The Indian rupee weakened by 15 paise to 89.90 against the US dollar early Wednesday, primarily due to foreign fund outflows from Indian equities. Forex traders noted continued selling by foreign portfolio investors, impacting the rupee's value.

Indian rupee enters 2026 on the back foot after worst annual drop in three years.The Indian rupee is poised for its largest annual fall in three years, weighed down by record equity outflows and the lack of a U.S. trade deal that left it out of the rally across Asia, with prospects for a recovery tied to the trade pact.

US Dollar Index rises to near 98.50 as FOMC Minutes hint at pausing rate cuts.US Dollar Index rises to near 98.50 as FOMC Minutes hint at pausing rate cuts

Rupee bias tilts higher on final day of year on supportive Asia FX, momentum.The Indian rupee was biased higher on the final trading day of the year, due to supportive moves in Asian currencies and favourable near-term momentum.

WTI stays below $58.00, nears 20% yearly drop.WTI stays below $58.00, nears 20% yearly drop

investingLive Asia-Pacific FX news wrap: Chinese PMIs show unexpected improvement in Dec.It was a relatively subdued New Year's Eve session across financial markets, with professional participants largely still in holiday mode. Liquidity was thin and price action muted, with most desks effectively waiting for markets to return in earnest from January 5.

Dollar dismal, yen muted in 2025 but euro and sterling shine.The U.S. dollar held steady on Wednesday but was headed for its biggest annual drop since 2017 as interest rate cuts, fiscal worries and erratic trade policies under U.S. President Donald Trump cast a shadow on currency markets in 2025.

China S&P Global/Rating Dog December 2025 Manufacturing PMI 50.1 (expect 49.8, prior 49.9).China's manufacturing sector showed tentative signs of stabilisation at the end of 2025, with business conditions edging back into expansion territory, according to the latest S&P Global/Rating Dog Purchasing Managers' Index data. While the improvement was modest, the rebound marked a welcome shift after months of subdued momentum, driven primarily by stronger domestic demand rather than a recovery in exports.

China's RatingDog Manufacturing PMI rises to 50.1 in December  .China's RatingDog Manufacturing PMI rises to 50.1 in December  

China RatingDog Manufacturing PMI increased to 50.1 in December from previous 49.9.China RatingDog Manufacturing PMI increased to 50.1 in December from previous 49.9

China official December 2025 PMIs: Manufacturing 50.1 (exp 49.2) Non-manu 50.2 (exp 49.8).China publishes two main PMI surveys, each capturing different parts of the industrial landscape. The official PMI is compiled by the National Bureau of Statistics and focuses primarily on large, state-owned and government-linked enterprises.

China eases property taxes but avoids bold housing stimulus (property downturn drags on).China is extending a value-added tax (VAT) exemption on certain residential property sales, adding another incremental policy measure aimed at stabilising its long-running real estate downturn. While the move lowers transaction costs for homeowners, it underscores Beijing's preference for targeted relief rather than more forceful intervention.

China boosts consumer trade-in subsidies, expands scheme to digital products in 2026.China is stepping up efforts to revive household spending, allocating fresh funding from ultra-long special treasury bonds to expand its consumer trade-in subsidy scheme. The programme, first launched in 2024, will be broadened in 2026 to include digital and smart products, as policymakers look to counter weak growth momentum and rebalance the economy toward consumption.

USD/JPY treads water near 156.00 as Yen traders grapple with multiple headwinds.USD/JPY treads water near 156.00 as Yen traders grapple with multiple headwinds

South Korea Consumer Price Index Growth (MoM) came in at 0.3%, above expectations (0.2%) in December.South Korea Consumer Price Index Growth (MoM) came in at 0.3%, above expectations (0.2%) in December

South Korea Consumer Price Index Growth (YoY) meets forecasts (2.3%) in December.South Korea Consumer Price Index Growth (YoY) meets forecasts (2.3%) in December

United States API Weekly Crude Oil Stock down to 1.7M in December 26 from previous 2.4M.United States API Weekly Crude Oil Stock down to 1.7M in December 26 from previous 2.4M

Economic and event calendar in Asia Wednesday, December 31, 2025 - China PMIs for December.China is set to publish a fresh round of Purchasing Managers' Index (PMI) data later today, Wednesday, December 31, offering another timely snapshot of economic momentum at the end of a difficult year for the world's second-largest economy.

Crude Oil Price Forecast: Battle at $59.00 Resistance Intensifies.Crude oil shows short-term bullish strength after reclaiming the 10-day moving average but remains in a downtrend until it decisively breaks and closes above the key $59.00–$59.14 resistance zone.

Natural Gas Price Forecast: Failed Bounce Keeps Downside Risk Elevated.Natural gas rebounded from a fresh retracement low but stalled quickly, keeping bearish pressure intact as traders watch whether a key Fibonacci support level hold.

Mexico Fiscal Balance, pesos down to -200.52B in November from previous -16.75B.Mexico Fiscal Balance, pesos down to -200.52B in November from previous -16.75B

Canadian Dollar flatlines with lack of catalysts driving year-end markets.Canadian Dollar flatlines with lack of catalysts driving year-end markets

USD into 2026: Gold, EUR/USD, USD/JPY.If you'd go back a year and tell traders that the US Dollar would top just two weeks into the New Year, and then embark on a dizzying bearish trend, few would probably believe you. As we came into 2025 the overwhelming show of sentiment was that a parity test was due in EUR/USD, and that made sense, given the massive sell-off that enveloped the pair in Q4 of last year.

Breaking: FOMC Minutes showed most officials judged further rate cuts would be appropriate.Breaking: FOMC Minutes showed most officials judged further rate cuts would be appropriate

Natural Gas News: Analysis Shows Storage Below 5-Year Average Overshadowed by Warm.Natural gas futures reverse at 50-day MA despite inventory falling below 5-year average. Warm 8-15 day weather forecast caps rally at $4.176.

United States Baker Hughes US Oil Rig Count: 412 vs 409.United States Baker Hughes US Oil Rig Count: 412 vs 409

Pound Sterling Price News and Forecast:Trades flat as Fed Minutes loom, BoE signals cautious easing.Pound Sterling Price News and Forecast:Trades flat as Fed Minutes loom, BoE signals cautious easing

2026 FOMC Voters Shift Dovish: Will Trump Get His Rate Cuts?.The FOMC will enter 2026 with a fresh slate of regional bank presidents and a leadership transition on the horizon, developments that could shift the markets current expectations for interest rate cuts at the world's most important central bank. As the chart below shows, traders are currently pricing in a wide range between one and four 25bps interest rate cuts by the Fed in 2026, presenting clear trading opportunities for traders who are able to successfully handicap the outcome:

Natural Gas Price Outlook – Natural Gas Recovering on Tuesday.Natural gas is looking to rally on Tuesday as we are starting to think about the January contract, and its historically strong performance.