A straightforward look at the main market themes for the week ahead, covering currencies, equities, commodities and crypto with key data and events in focus.
FX Trust Score Weekly Market Outlook
Week Ahead: 29 December 2025 – 2nd January 2026
Each week, FX Trust Score publishes a Weekly Market Outlook to help traders stay informed and prepared for the trading week ahead. The report brings together key developments across forex, equities, commodities and crypto markets, as well as insights into central bank activity. It is a trusted source, designed for clarity and relevance and provides traders with a concise overview of what is driving global markets. Here’s what traders are watching in the days ahead.
Last Week in Review
Markets closed last week with relatively limited movement across major asset classes. Trading conditions were generally orderly, with currencies, equities and commodities remaining within established ranges. Activity increased briefly around data releases, but was modest as traders remained cautious.
The US dollar (USD) moved sideways for much of the week, responding to mixed economic signals. The euro and pound posted small gains during periods of improved risk sentiment. Equity markets edged higher, led by continued strength in technology stocks and Gold eased from recent highs, whilst oil prices stabilised following earlier volatility.
Forex Focus
Foreign exchange markets have begun the week with major currency pairs trading close to recent levels. Attention is centred on upcoming US economic data, including inflation and consumer-related releases, which may influence expectations around the policy outlook. The dollar remains sensitive to these data points, with short-term direction likely to be driven by how results compare with expectations.
The euro continues to trade in a relatively narrow range, reflecting broader market conditions rather than region-specific developments. Sterling remains constrained ahead of UK labour market and inflation figures, which may provide additional clarity for near-term pricing.
The yen (JPY) has remained stable, with interest rate differentials continuing to play a dominant role. Unless there is a material shift in policy communication or inflation data, movements in yen pairs are likely to remain contained.
Equities Snapshot
Equity markets enter the week with positioning largely unchanged. Gains remain concentrated in a limited number of sectors, particularly technology, while broader participation has been more subdued. Investors appear focused on upcoming economic data and corporate updates before adjusting exposure.
US markets are expected to open the week steadily with limited directional conviction early on. European markets continue to reflect mixed economic signals, with softer growth indicators weighing against pockets of resilience. Corporate commentary and guidance will remain important drivers, particularly from large-cap and technology-linked firms.
Commodities Watch
Gold is trading near recent levels after dropping from earlier highs. Demand linked to macro uncertainty remains evident, whilst short-term price movements are likely to be influenced by changes in the US dollar and government bond yields.
Oil prices remain rangebound. Traders continue to weigh global demand expectations against supply-side factors, including inventory levels and production discipline. Weekly inventory data may provide short-term direction, though broader trends remain unclear.
Crypto Market Update
Crypto markets have kicked off the week in a relatively stable phase following recent consolidation. Bitcoin continues to trade near recent highs, whilst Ethereum has shown modest relative strength. Trading activity remains steady, with sentiment broadly neutral across the wider market.
Focus remains on regulatory developments, institutional participation and macroeconomic conditions. These factors continue to shape medium-term expectations and may contribute to periods of volatility.
What to Watch This Week
Key scheduled events this week include US inflation, retail spending and consumer sentiment data, along with UK labour market and CPI releases. Eurozone activity and sentiment indicators are also due.
Central bank commentary from the US, UK and Japan will be monitored for any changes in tone. In commodities, oil inventory data remains a focal point, while equity markets will track corporate updates, particularly from major technology companies.
Trader’s Takeaway
Market conditions remain balanced at the start of the week, with price action largely driven by scheduled data rather than trend momentum. However, volatility may increase around key releases, particularly in foreign exchange and equity index markets.
Until clearer signals emerge, attention is likely to remain on data outcomes and cross-market reactions, with positioning adjusted accordingly as the week develops.
We publish the latest news and FX Trust Score Weekly Market Outlooks in our dedicated Financial Financial Market News section.
