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Here’s what you need to know on Wednesday, December 31st:

The highlight of the day was the Federal Open Market Committee (FOMC) Minutes of the December meeting released in the American afternoon. The Minutes showed that most participants are willing to deliver additional rate cuts if inflation declines over time. The document also showed that economic growth is projected to move modestly faster than at the October meeting.

US Dollar Index (DXY) trades in the 98.20 price zone on Tuesday, gaining 0.2% for the day as the market digests the Federal Open Market Committee (FOMC) minutes released earlier today.

Gold: The Yellow Metal is trading above $4,350 on Tuesday, trimming back a quarter of its weekly losses after bottoming at $4,300 on Monday. The XAU/USD pair declined sharply after hitting an all-time high of $4550 at the beginning of the week, due to profit-taking ahead of the New Year’s holiday.

EUR/USD: The pair is trading near the 1.1750 region at the time of writing, amid current market calm as we approach the New Year holiday. The United States (US) Federal Reserve (Fed) is expected to cut rates between one and three times next year, helping keep the pair afloat ahead of year-end.

GBP/USD: is trading around 1.3470 on Tuesday, consolidating after surging to a more than three-month high near 1.3530.

USD/JPY: trades near the 156.40 price zone as the USD recovers some ground following the FOMC Minutes release.

The AUD/USD and the USD/CAD are ending the day pretty much unchanged.

Most financial markets will remain closed on Wednesday due to the New Year’s holiday.

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