2025 has been a challenging year for the US Dollar, which has been one of the weakest performers among major currencies. Across a variety of measures, the dollar is posting almost double-digit declines — the DXY is down approximately 9.7% year-to-date as of December 30, 2025, on track for its worst annual performance since 2017. This reflects factors like Fed rate cuts, narrowing interest rate differentials, fiscal concerns, and global diversification away from USD assets. These themes gained...

We won't hear a policy decision from the BoJ until January 23rd, the Fed and the BoC will follow just a few days later. Now that all December rate decisions are out of the way, we can start planning for next year. January tends to be a weird trading month, so watch out. As a reminder, before the Fed meets, we're set to receive December jobs and price data points.

**AS SEEN IN ONLINE TOOLS > FX RELATIVE STRENGTH, GET FULL ACCESS NOW! The G10 currencies experienced significant USD weakness throughout much of 2025, with the US Dollar Index declining sharply in the first half of the year (down ~10.7% by mid-2025, its worst H1 performance in decades) before stabilizing and trading in a narrower range since July/August. The dollar has remained soft on Fed rate cuts and dovish pricing, reduced U.S. exceptionalism fears, foreign hedging and repatriation....