Forex Market Analysis: Key Currency Movements and Precious Metals Update

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Overview of Forex Market on December 12, 2025

The Forex market on December 12, 2025, exhibits significant movements across major currency pairs and precious metals. Noteworthy developments include a missed UK GDP forecast impacting the GBP, a consolidating USD/JPY ahead of the Bank of Japan meeting, and surging prices in gold and silver as the US dollar weakens on dovish Federal Reserve signals. This comprehensive analysis delves into key trends and price forecasts influencing traders and investors alike.

GBP and EUR Movements

The GBP faced downward pressure as the UK GDP missed expectations, causing a brief dip in GBP/USD, which later saw a recovery above the 1.3360-70 resistance. The EUR/USD pair demonstrated resilience, advancing above a downtrend line and targeting higher levels towards 1.1820, supported by a dovish Fed outlook which spurred a sell-off in the US dollar. The GBP/EUR exchange touched 5-week highs post-UK budget announcements before stabilizing around 1.1430.

USD/JPY and Asian Market Influences

The USD/JPY pair saw varied activity; it initially consolidated in anticipation of the BOJ meeting and later rebounded to near 156.00 despite expectations of a BOJ rate hike. This rebound reflects the complex interplay between market anticipation and actual policy developments. Additionally, the USD/CNH pair extended its decline as the Chinese Yuan fixing reached a 14-month low, underscoring shifts in Asian currency dynamics.

Gold and Silver Market Trends

Gold prices neared record highs, propelled by a dovish Federal Reserve outlook which bolstered demand for the yellow metal as a safe haven. Silver followed suit, hitting fresh highs of $64.00 per ounce, as the weakening US dollar added to the upward momentum in precious metals. Both metals appear supported by steady safe-haven demand despite occasional pullbacks when equities rebound.