Forex Market Analysis: USD/CHF Gains and AUD/USD Slides
· Forex · QuoteReporter
Forex Market Analysis
Published: December 17, 2025
Market Overview
Recent macroeconomic data has influenced currency movements, particularly in the UK and the Eurozone. The UK reported a lower-than-expected inflation rate of 3.2% for November, down from 3.6% in October, which has intensified selling pressure on the Pound Sterling (GBP) and reinforced expectations for a potential rate cut by the Bank of England (BoE). This disinflationary trend suggests easing price pressures and has impacted GBP crosses, including a notable decline against the Euro (EUR) and the US Dollar (USD).
In the Eurozone, the EUR/USD pair has shown volatility, briefly surpassing 1.1800 before retreating, as traders await the upcoming ECB meeting for potential monetary policy signals. Meanwhile, the Japanese Yen (JPY) remains under pressure, with USD/JPY approaching 156.00 ahead of the Bank of Japan (BoJ) policy meeting. As for global trade, the ongoing sell-off in oil prices, with Brent dipping below $60 per barrel, reflects concerns over surplus supply, further influencing currency and commodity markets.
Today’s Economic Events
Today’s economic events are likely to have significant implications for several major currency pairs, particularly GBP/USD, EUR/USD, and USD/JPY.
1. **Currencies Most Affected**: The GBP is likely to be impacted by the CPI release, with a lower-than-expected inflation figure (3.2% vs. 3.5% forecast) potentially weakening the pound as it raises concerns about the Bank of England’s monetary policy stance. The EUR will be sensitive to the CPI data, but with the actual figure matching the forecast (2.2%), the euro may experience limited volatility unless there are deviations in upcoming releases. The USD could be influenced by the Crude Oil Inventories report, where a larger-than-expected draw (-2.400M forecast) might support the dollar due to implications for inflation and economic activity.
2. **Expected Volatility and Market Reactions**: The GBP/USD pair could see increased volatility as traders react to the CPI data, possibly driving the pair lower if
- 02:00 GBP: CPI (YoY) (Nov)
- 05:00 EUR: CPI (YoY) (Nov)
- 10:30 USD: Crude Oil Inventories
Major Currency Pairs Performance
| Currency Pair | Price | Daily % | Weekly % | Monthly % |
|---|---|---|---|---|
| EUR/USD | 1.17179 | -0.24% | -0.16% | +1.49% |
| USD/JPY | 155.50300 | +0.20% | -0.30% | +0.91% |
| GBP/USD | 1.33302 | -0.32% | -0.37% | +2.17% |
| USD/CHF | 0.79769 | +0.35% | -0.23% | -1.50% |
| AUD/USD | 0.66171 | -0.34% | -0.86% | +1.75% |
| USD/CAD | 1.37744 | +0.06% | -0.12% | -2.36% |
| NZD/USD | 0.57722 | -0.09% | -0.58% | +2.53% |
Performance Charts
Best Daily Performer
Technical Analysis: 1. The USD/CHF pair is currently in a downward trend, as indicated by the negative weekly and monthly changes and its position below the 50-day and 200-day SMAs.
2. Key technical levels to watch are the 0.80 resistance level, with further resistance likely at the 50-day SMA, and the recent low of 0.7950 as key support.
3. Short-term outlook remains bearish given the prevailing downward trend, but today’s gain suggests potential for corrective rebound if the pair can sustain above the 0.80 mark.
Worst Daily Performer
Technical Analysis: 1. The AUD/USD pair is currently under a bearish pressure, as evidenced by its position in the 20-day range and its negative daily and weekly changes, despite a positive monthly change.
2. The pair is hovering near the 50-day SMA, which acts as the immediate support, while the 200-day SMA and the descending resistance trendline are key barriers to watch.
3. In the short-term, if the pair fails to sustain above the 50-day SMA, we might expect further downside with the next key support at the 200-day SMA.
Normalized Performance – All Majors (3 Months)
Disclaimer
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