The euro held near multi-month highs, supported by the ECB-Fed policy gap as expectations for a more accommodative US rate outlook continued to weigh on the dollar. The Japanese yen drifted toward 156 per dollar, pressured by concerns over Japan’s expansive fiscal stance and limited policy flexibility given elevated public debt.

Brent crude hovered near $61 per barrel, set for its steepest annual decline since 2020 as oversupply concerns dominated. Even so, geopolitical risk linked to Russia-Ukraine negotiations, Middle East instability, and US restrictions on Venezuelan exports continued to provide a floor, with attention turning to the upcoming OPEC+ meeting.

Across risk assets, the US 100 Tech Index eased slightly in year-end trade, reflecting consolidation after a strong annual run as valuations came back into focus.

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