Major Currency Pairs Show Mixed Performance Amid Fed Sentiment

Currency Market Dynamics

The major currency pairs have shown diverse performance as of December 23, 2025, with movements largely influenced by The Federal Reserve's interest rate sentiment. Key currency pairs have demonstrated the following changes: EUR/USD is currently at 1.1789, representing a 13.76% year-to-date (ytd) increase; GBP/USD stands at 1.3508 with a 7.84% ytd gain; and AUD/USD is recorded at 0.6691, showing an 8.08% ytd rise. Conversely, USD/JPY has corrected by 0.89% ytd to 155.89, while USD/CHF has seen a more significant 13.14% ytd correction to 0.7883 ¹

Market Outlook for Early 2026

Taufan Dimas Hareva, Research and Development ICDX, provides insight into the market's future trajectory. According to Hareva, as we enter early 2026, the forex market's attention is expected to remain focused on the diverging monetary policies of global central banks. After a prolonged period of high interest rates, market participants are shifting their attention from inflation concerns and monetary tightening to the timing and depth of policy easing, particularly by The Federal Reserve. This shift in focus is anticipated to continue influencing the performance of major currency pairs in the coming months.