Forex News Today: December 8, 2025 – DXY Weakens, Gold Surges Above 4200 Amid Fed Rate Cut Bets
US Dollar Index DXY Slips to 98.84 on Fed Expectations
The US Dollar Index (DXY) traded at 98.84 on December 8, 2025, down 0.16% from the prior session amid anticipation of a Federal Reserve rate cut. Softer-than-expected PCE inflation data from the previous week reinforced expectations for a 25 basis point cut at the Fed’s final 2025 meeting, pressuring the dollar lower. Over the past month, DXY has weakened by 0.75%, with forecasts pointing to 98.83 by quarter-end.
EUR/USD and GBP/USD Gain Ground Against Subdued Dollar
EUR/USD hovered near 1.1645-1.1650, supported by dollar weakness and upcoming German Industrial Production data. GBP/USD broke above 1.3300, targeting resistance at 1.3365 after clearing key moving averages, with bulls eyeing 1.3400 on sustained momentum. Commodity currencies like AUD/USD above 0.6600 and NZD/USD over 0.5750 also advanced as risk appetite improved.
Gold XAU/USD Hits 4216 Rally on Safe-Haven Demand
Spot gold (XAU/USD) rose to 4216.88, up 0.37% daily and 58.41% year-over-year, testing highs near 4257 within a bullish channel. Lower US yields and Fed dovishness fueled the surge, with support at 3945 and upside potential beyond 4945 if momentum holds. Geopolitical risks and inflation hedging continue driving gold’s strength in forex markets.
Key Forex Economic Events December 8, 2025
Today’s calendar features German Industrial Production (forecast 0.2% m/m), Swiss SECO Consumer Climate (-34), and Italian bank holiday impacts. Traders eye these alongside Fed week focus, including US labor data later, for volatility in USD pairs. OPEC-JMMC meetings and broader data like M2 Money Supply add to global forex influences.
Forex Trading Outlook: Fed Decision Looms
Watch DXY support near 98.00 for USD/JPY and majors; breaks could accelerate EUR/USD toward 1.1700. Gold traders target 4257 resistance with stops below 4214, aligning with Fed rate cut signals. Position for mid-week volatility using tight risk management on platforms like TradingView.