Forex Today: Markets start 2026 on a calm note

Market Overview for Friday, January 2

As the first trading session of the new year begins, global financial markets continue to reflect a subdued, holiday atmosphere. With no major economic reports scheduled for release on Friday, trading activity is expected to remain light as the weekend approaches.

The US Dollar (USD) Index is maintaining its position above 98.00 during Friday’s European morning, moving within a narrow range after a modest rebound at the close of 2025. Meanwhile, US stock index futures are showing gains between 0.3% and 0.7%, recovering from earlier losses in the week. Looking ahead, the Institute for Supply Management (ISM) is set to release December’s Manufacturing Purchasing Managers' Index (PMI) data on Monday.

Gold experienced significant declines before the New Year holiday but has rebounded on Friday. At the time of writing, XAU/USD is trading close to $4,380, marking a daily increase of over 1%.

Likewise, XAG/USD has surged toward $74, posting a daily gain exceeding 3%. Despite this recovery, Silver remains down nearly 7% for the week and is poised to end its five-week streak of gains.

EUR/USD is holding firm near 1.1750 after a slight dip earlier in the week. Investors will be watching for the release of the Sentix Investor Confidence data for January, which is scheduled on the European economic calendar later today.

After falling to its lowest point in over a week and briefly touching 1.3400 at the end of 2025, GBP/USD has reversed course, recovering much of its weekly losses. The pair is trading calmly above 1.3450 in early Friday action.

Following a decline on Monday, USD/JPY has closed higher for two straight sessions and continues to climb, trading near 157.00 as Friday begins.