🔓Short Market Recaps by WinningFX

[winningfx]

Short Market Recap (19/12/25)

💵 Dollar: The dollar index edged lower after a softer US inflation report. Headline CPI fell 3.0% → 2.7% (vs 3.1% expected), while core inflation slowed to its weakest pace since early 2021. Combined with recent weak jobs data, falling Treasury yields and rising Fed rate-cut expectations kept pressure on the dollar.

🥇 Gold: Gold surged to fresh record highs before pulling back as key resistance held. Softer US inflation and easing expectations supported bullion, though the retreat appears technical, driven by profit-taking. Focus now shifts to US Core PCE for confirmation of the inflation trend.🇯🇵 Japanese Yen: JPY is in sharp focus ahead of a potentially historic BoJ decision. Markets expect Japan to raise rates to a three-decade high and signal further tightening, supported by strong wage growth and persistent inflation—setting the stage for heightened volatility in yen crosses.

₿ Crypto: Cryptocurrencies remain under pressure. Bitcoin briefly rebounded on softer inflation but quickly faded amid weak global data and limited catalysts, as investors continue to reduce exposure to high-risk assets.

🔎 Takeaway: Cooling US inflation weighs on the dollar, supports gold, puts JPY in the spotlight, while fragile growth keeps crypto sentiment cautious.