The U.S. Dollar is trading in familiar ranges as we close out the last remaining days of 2025, likely ending December with an overall loss of over 1.0%.
Indeed, the last few days of a wild year in FX are finally here. 2026 may not be gearing up to be as packed with the introduction of changes, and will be a period of business transition as well as adjustment to established American protectionism across industries. Traders and analysts are thinking the new year will be one of de-escalation instead of escalation, as even geopolitical conflicts try to find room for a ceasefire and long-term peace.
There will be data points out for release throughout the week, with ADP Weekly Employment Change and the FOMC Minutes from their last meeting being the more significant ones out tomorrow. On Friday, we will end the week with December S&P Global U.S. Manufacturing Purchasing Managers Index figures. The Buck is trying to get away from its weakest levels since the start of October.
What to Watch This Week…
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EUR ⇓
The Euro is dwindling slightly, coming down from its highest value over the Dollar since the end of September. With the year absolutely over for the Europeans in terms of data, we will likely see very tight trading and hold to these ranges until we begin full throttle next week. The matter of whether Russia and Ukraine can find some common ground will move the needle for the shared currency, so we shall watch for developments on that front.
MXN ⇓
The Mexican Peso is about to close out December with a 2.0% gain after progress in December regardless of economic indicators revealing weakness. Growth has evaded the Mexican economy lately, while production has lowered from the days of “friendshoring.” Latin America is facing a crucial testing period for hemispheric leadership, and Mexico is turning out to be more than just a North American bridge connecting partners across the Pacific Rim. The currency may have room for growth if 2026 sees momentum both diplomatically and economically. Our southern neighbor’s tender climbed 15.0% this year.
