The Euro (EUR) has benefited from Germany’s fiscal loosening and diversification flows, but stronger US growth projections and resilient consumer spending suggest EUR/USD may remain range-bound in 2026 rather than extending a major rally, Rabobank's FX analyst Jane Foley reports.

The AUD/USD pair extends its correction further to near 0.6620 during the European trading session on Wednesday, which started on Thursday after refreshing an almost three-month high near 0.6686.

The European Union (EU) parliament announces during European trading hours on Wednesday that it has approved a deal to phase out Russian gas imports by late 2027.

USD/CAD trims some losses and reaches 1.3780 after bouncing from 1.3745 lows.

EUR/USD pulled back toward 1.1700 after testing 1.1800, as Germany’s IFO business expectations dipped slightly. The euro remains supported by the ECB’s steady policy stance versus expected Fed easing, BBH FX analysts report.

Silver’s (XAG/USD) is standing comfortably at the upper range of the $65.00s on Wednesday’s European session, after having hit fresh all-time highs at $66.54 earlier today as delayed US labour figures failed to boost confidence in the US economy.

The USD/JPY pair gains 0.55% and jumps higher to near 155.50 during the European trading session on Wednesday. The pair strengthens as the US Dollar (USD) outperforms its peers, following the release of the United States (US) Nonfarm Payrolls (NFP) report for October and November.

Eurozone Labor Cost Index came in at 3.3% below forecasts (3.5%) in 3Q

Eurozone Core Harmonized Index of Consumer Prices (MoM): -0.5% (November)

Eurozone Harmonized Index of Consumer Prices (YoY) came in at 2.1% below forecasts (2.2%) in November

Eurozone Core Harmonized Index of Consumer Prices (YoY) meets expectations (2.4%) in November

Eurozone Harmonized Index of Consumer Prices (MoM) meets forecasts (-0.3%) in November

The NZD/USD pair trades 0.15% lower to near 0.5775 during the European trading session on Wednesday. The Kiwi pair is under pressure as the US Dollar (USD) recovers sharply, following the release of the United States (US) Nonfarm Payrolls (NFP) data for October and November.

EUR/USD has stalled near 1.1800, with heavy option expiries likely to keep the pair range-bound as markets await potential direction from this week’s ECB meeting, ING's FX analyst Chris Turner notes.

Germany IFO – Expectations came in at 89.7, below expectations (90.5) in December

Germany IFO – Business Climate registered at 87.6, below expectations (88.2) in December

USD/CAD gains ground after registering modest losses in the previous session, trading around 1.3780 during the European hours on Wednesday. The daily chart suggests a potential upside breakout, with falling, converging trendlines forming a bullish descending wedge pattern.

Germany IFO – Current Assessment below forecasts (85.7) in December: Actual (85.6)

EUR/USD is pulling back from nearly three-month highs above 1.1800, trading at 1.1710 at the time of writing, as the US Dollar (USD) regains lost ground.

The GBP/JPY cross meets with some supply following an intraday uptick to the 208.00 neighborhood on Wednesday in reaction to softer UK inflation figures.

Here is what you need to know on Wednesday, December 17:

The USD/CHF pair trades in positive territory around 0.7960 during the early European session on Wednesday, bolstered by a rebound in the US Dollar (USD). However, the prospect of the US Federal Reserve (Fed) interest rate cut next year could weigh on the Greenback against the Swiss Franc (CHF).

The United Kingdom (UK) Office for National Statistics (ONS) will publish the highly relevant Consumer Price Index (CPI) data for November on Wednesday at 07:00 GMT.

The Indian Rupee (INR) gains sharply against the US Dollar (USD) in the opening session on Wednesday. The USD/INR pair plunges over 1% to near 90.00 from its all-time high of 91.56 due to the Reserve Bank of India’s (RBI) intervention in the spot and Non-deliverable Forward (NDF) markets.

The EUR/USD pair declines to around 1.1730 during the early European session on Wednesday, pressured by renewed US Dollar (USD) demand.

EUR/JPY holds ground after two days of losses, trading around 181.90 during the Asian hours on Wednesday.

The Japanese Yen (JPY) edges lower during the Asian session on Wednesday as bulls turn cautious and opt to wait for the Bank of Japan (BoJ) policy update before placing fresh bets. Hence, the focus will remain glued to the outcome of a two-day BoJ meeting on Friday.

USD/CAD rebounds from a three-month low of 1.3730, recorded in the previous session, currently trading around 1.3770 during the Asian hours on Wednesday.

The Australian Dollar (AUD) declines against the US Dollar (USD) on Wednesday, extending its losses for the fifth consecutive day.

The EUR/USD pair steadies around the 1.1750 area during the Asian session on Wednesday, and for now, seems to have stalled the previous day's sharp retracement slide from the highest level since September 24.