Forex Today: Markets remain quiet to begin 2026

Here is what you need to know on Friday, January 2:

Gold Price Forecast: XAU/USD extends rally above $4,350 on US rate cut bets, geopolitical tensions

Gold price (XAU/USD) extends the rally to near $4,375 during the early European session on Friday. The rally in the precious metal is supported by the growing expectations of further interest rate cuts from the US Federal Reserve (Fed) and safe-haven demand.

GBP/USD Price Forecast: Holds above nine-day EMA near 1.3450

GBP/USD edges higher on the first day of the year, trading around 1.3470 during the Asian hours on Friday. The technical analysis of the daily chart indicates a weakening of a bullish bias as the pair remains slightly below the lower boundary of the ascending channel pattern.

EUR/USD Price Forecast: Keeps bullish vibe, first upside barrier emerges above 1.1800

The EUR/USD pair trades in positive territory around 1.1755 during the early European trading hours on Friday.

USD/CHF holds losses near 0.7900 amid dovish tone surrounding Fed outlook

USD/CHF loses ground as the US Dollar (USD) weakens over expectations of two more Federal Reserve rate cuts in 2026. The pair is trading around 0.7920 during the Asian hours on Friday.