AUD/JPY outlook: Jobs volatility puts RBA repricing in focus.AUD/JPY has ridden a wave of risk appetite and hawkish RBA repricing, but the rally faces a critical test with Australia's jobs report. With bullish positioning stretched and technical signals flashing caution near 104.00, even a marginally weak print could trigger a sharp reversal.

USD/JPY slumps to near 156.00 after Fed cuts rates.USD/JPY slumps to near 156.00 after Fed cuts rates

Canadian Dollar makes fresh headway following another Fed rate cut.Canadian Dollar makes fresh headway following another Fed rate cut

Trading Day: Market gives Fed resounding cheer.The dollar sank and Wall Street rallied on Wednesday, with the small-cap Russell 2000 index surging to new highs, after the Fed cut interest rates and Chair Jerome Powell offered a positive outlook on the path for growth and inflation.

FOMC: Maintaining Optionality.As expected, the FOMC reduced the fed funds target range by 25 bps to 3.50%-3.75% at the conclusion of its December meeting. As was also anticipated, the decision was not unanimous.

New Zealand Manufacturing Sales increased to 1.1% in 3Q from previous -2.9%.New Zealand Manufacturing Sales increased to 1.1% in 3Q from previous -2.9%

Natural Gas Price Forecast: Wedge Breakdown + Weekly Reversal Points to 50-Day.Natural gas extended its sharp correction Wednesday to a new pullback low of $4.46, confirming the 20-day average as resistance and violating the ascending wedge lower boundary.

Dollar Drubbed on T-Bill Purchases Despite Fed's Hawkish Cut.While it was only an announcement to purchase Treasury Bills and framed as a ‘reserve management' move, the fact that the Fed is so willing to jump back into Treasury purchases illustrates how they won't hesitate to use open market operations to accomplish their aims, even if doing so in an unconventional manner.

US dollar slides after Fed cuts rates, as expected.The U.S. dollar fell against major peers including the euro, Swiss franc, and Japanese yen on Wednesday after the Federal Reserve lowered interest rates in a widely expected move, but indicated it will likely pause its easing cycle at the next policy meeting in January.

FX Today: Australian, US jobs report take centre stage.FX Today: Australian, US jobs report take centre stage

Pound-to-Euro Forecast: GBP Slips as Weak USD Lifts EUR Rates.The Pound Euro (GBP/EUR) exchange rate struggled on Wednesday as the single currency enjoyed its negative correlation to a falling US Dollar (USD). Latest — Exchange Rates:Pound to Euro (GBP/EUR): 1.14476 (+0.06%)Pound to Dollar (GBP/USD): 1.33349 (+0.24%)Euro to Dollar (EUR/USD): 1.16486 (+0.17%) DAILY RECAP: The Euro (EUR).

Fed Delivers on Another Quarter-Point Cut, But Signals Higher Bar for Further Policy Easing.The Federal Reserve Open Market Committee (FOMC) reduced the federal funds rate by 25 basis points (bps), lowering the target range to 3.5%-3.75%. The move comes after consecutive quarter-point cuts at each of the prior two meetings.

Fed projects only 50 bps of additional rate cuts between 2026 and 2027; lifts GDP forecasts.Fed projects only 50 bps of additional rate cuts between 2026 and 2027; lifts GDP forecasts

US Dollar Index tumbles as Fed rate outlook widens.US Dollar Index tumbles as Fed rate outlook widens

FOMC cuts as expected; dot plot shows only one cut per year through 2027.The Fed cut interest rates by 25bps to 3.50–3.75%, fully in line with expectations. The decision carried only one dissent, with Governor Stephen Miran again voting for a larger 50bps reduction.

The Federal Reserve cuts rates by 25 basis points to 3.50% to 3.75%.The Federal Reserve cut rates by 25 basis points as expected. The full statement from the Fed.

White House economic advisor Hassett: Fed has plenty of room to cut rates.Yesterday, Hassett struck a more Powell-like tone, emphasizing that monetary policy remains data dependent. By contrast, Fed Governor Miran and Treasury Secretary Bessent have leaned more openly toward pre-emptive rate cuts, arguing that slower growth and rising labor-market risks in the first quarter warrant earlier action.

WTI steadies ahead of Fed decision after EIA reports 1.8M barrel draw.WTI steadies ahead of Fed decision after EIA reports 1.8M barrel draw

Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats As Crude Inventories Decline By 1.8 Million Barrels.Oil markets are losing ground as traders focus on rising supply and weak demand.

BoC Done With Rate Cuts, Expects 2% Inflation to Persist.The Bank of Canada delivered a well-telegraphed, widely-expected hold today, keeping the overnight rate at 2.25%—the bottom of the neutral range and where we expect it will remain through the end of 2026.

USD/JPY forecast: Hawkish Fed cut could trigger fresh rally.At the time of writing in late afternoon trading in London, the US dollar was broadly lower in anticipation of a third rate cut from the Fed. There was no major data release today and the Bank of Canada's rate decision came and went without stirring volatility.

Summary of the BoC event: Economic resilience and data-dependent stance.Summary of the BoC event: Economic resilience and data-dependent stance

Russia Consumer Price Index (MoM): 0.42% (November) vs previous 0.5%.Russia Consumer Price Index (MoM): 0.42% (November) vs previous 0.5%

Crude oil inventories see a drawdown at -1.812 million versus -2.310 million estimate.The major standout in the report today was higher than expected gasoline and distillate builds, both of which came in sharply above forecasts — a bearish signal for refined product demand. The private data also showed a gasoline in distillate build.

Bank of Canada Holds as Expected .The opening statement highlighted that while tariffs and trade uncertainty continue to weigh on business investment, the economy has proven to be relatively resilient. However, it noted that measures of hiring intentions remain “subdued” despite the recent improvements in the labour market.

US Dollar Forecast: DXY Slips as Traders Await Fed Rate Cut and Powell Guidance.DXY softens as traders await a potential hawkish Fed cut. Powell's guidance and steady Treasury yields shape short-term dollar expectations.

BoC Confirms Long Pause, Markets Pivot to High-Stakes FOMC.Canadian Dollar eased modestly in early US trading after the BoC left its policy rate unchanged at 2.25%, as markets had fully expected. While the decision itself carried no surprises, the statement struck a slightly cautious tone on growth, prompting a mild pullback in CAD after its recent period of outperformance.

BoC holds steady, points to weak Q4 GDP and balanced inflation outlook.The BoC kept the overnight rate unchanged at 2.25% today, in line with expectations. The most notable element of the statement was the Governing Council's assessment that, if inflation and economic activity evolve broadly as projected in October, the current policy rate is “about the right level.

BOC Macklem: Given the current balance of risks, the policy rate is at the right level.Policy rate held at 2.25%, with Governing Council judging it as appropriate to keep inflation near 2% while supporting the economy through a structural adjustment caused by US trade conflict.

Natural Gas News: Short Covering Lifts Futures Today but Forecast Remains Bearish.Natural gas futures rise on short covering, but traders eye upcoming EIA report and warm weather forecasts for signs of further downside.