Here is what you need to know on Wednesday, December 31:

The Pound Sterling (GBP) trades broadly higher against its major peers in European trading hours on the last day of 2025.

USD/CHF extends its winning streak for the fourth consecutive day, trading around 0.7930 during the early European hours on Wednesday. The pair appreciates as the US Dollar continues to gain ground after the release of the Federal Open Market Committee (FOMC) December Meeting Minutes on Tuesday.

The EUR/GBP cross softens to around 0.8720 during the early European session on Wednesday. A cautious tone surrounding the Bank of England’s (BoE) policy outlook could provide some support to the Pound Sterling (GBP) against the Euro (EUR).

The EUR/JPY cross trades on a flat note near 183.80 during the early European session on Wednesday. Earlier this week, the Bank of Japan’s (BoJ) December meeting "Summary of Opinions" showed several board members advocating for a continued tightening path and additional rate hikes in 2026.

GBP/USD remains subdued for the second consecutive day, trading around 1.3460 during the Asian hours on Wednesday. The technical analysis of the daily chart indicates a weakening of a bullish bias as the pair is positioned slightly below the lower boundary of the ascending channel pattern.

The USD/JPY pair trades 0.2% higher to near 156.60 during the late Asian trading session on Wednesday. The pair gains as the US Dollar (USD) trades higher, following the release of the Federal Open Market Committee (FOMC) minutes of the December policy meeting showed on Tuesday.

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The Indian Rupee opens on a flat note against the US Dollar (USD) on the last trading day of 2025. The USD/INR pair wobbles around 90.20 as trading volume remains thin globally in the final stretch of the year.

The EUR/USD pair posts a fresh weekly low near 1.1740 during the Asian trading session on Wednesday.

The USD/CAD pair trades in a tight range around 1.3700 during the Asian trading session on Wednesday. The Loonie pair consolidates at the start of the last trading day of 2025 amid thin trading volume.

The NZD/USD pair holds losses near 0.5785 during the Asian trading hours on Wednesday. The New Zealand Dollar (NZD) remains weak against the US Dollar (USD) despite the upbeat Chinese economic data. Traders brace for the release of the US Initial Jobless Claims report later on Wednesday.  

The Australian Dollar (AUD) inches higher against the US Dollar (USD), holding ground for the second successive session. Volumes are expected to be thin due to the New Year's holiday in Australia.

The GBP/USD pair holds steady around 1.3465 during the early Asian trading hours on Wednesday. However, the Bank of England (BoE) guided that monetary policy will remain on a gradual downward path, which might underpin the Cable against the US Dollar (USD).

USD/JPY remains caught in near-term congestion just north of the 156.00 handle during the final week of 2025’s trading year. Yen traders are battling headwinds on multiple fronts, with the Bank of Japan (BoJ) carrying much of the vexation risk for Yen markets.

AUD/USD strung itself along the 0.6700 handle for the second day in a row as the Aussie-Dollar pairing grapples with end-of-year market volumes restraining overall momentum.

The Canadian Dollar (CAD) flatlined on Tuesday, holding in a near-term range against the US Dollar (USD) as markets grind their way through the end-of-year slowdown. Market momentum remains absent with most market participants sidelined through the final trading week of 2025.

EUR/USD slipped into the 1.1750 region on Tuesday, falling back a scant one-fifth of one percent following several days of muted declines.

NZD/USD trades virtually unchanged on Tuesday around 0.5800 at the time of writing, after trimming part of its recent losses.

GBP/USD trades around 1.3460 on Tuesday at the time of writing, down 0.30% on the day. The pair consolidates after failing to sustain the bullish momentum seen last week, which had lifted it to a more than three-month high near 1.3535.

AUD/USD trades around 0.6700 on Tuesday at the time of writing, up 0.10% on the day, as markets remain cautious ahead of the release of the Minutes from the December meeting of the Federal Open Market Committee (FOMC), due later in the day.

Silver (XAG/USD) is trimming losses on Tuesday after depreciating beyond 7% amid  Monday’s thin liquidity conditions.

EUR/JPY trades around 183.50 on Tuesday at the time of writing, down 0.15% on the day, amid thin trading volumes as markets head toward the year-end holidays. The pair reflects a modest rebound in the Japanese Yen (JPY), supported by increasingly hawkish signals from the Bank of Japan (BoJ).

The USD/CHF pair trades 0.12% lower to near 0.7880 during the European trading session on Tuesday.

The US Dollar picked up from five-month lows near 1.3640 against the Canadian Dollar last week, but upside attempts remain capped below 1.3700.

USD/JPY trades slightly lower on Tuesday, hovering around 155.80 at the time of writing, down 0.15% on the day. The pair’s decline reflects a modest strengthening of the Japanese Yen (JPY) following the release of the Bank of Japan (BoJ) Summary of Opinions from its December policy meeting.

Sterling’s rally against the Japanese Yen has stalled below the 211.50 level. The pair is now looking for direction, with downside attempts contained above 210.00 so far.

The AUD/USD pair trades mildly higher to near 0.6710 during the European trading session on Tuesday. The Aussie pair rises as the Australian Dollar (AUD) gains amid expectations that the Reserve Bank of Australia (RBA) will tighten its monetary policy in 2026.

The New Zealand Dollar has trimmed some losses on Tuesday, returning to levels above 0.5800 at the time of writing, but recovery attempts look frail so far.

The Pound Sterling (GBP) trades flat around 1.3500 against the US Dollar (USD) during the European trading session on Tuesday, close to an over three-month high of 1.3535 posted last week.