FX Weekly Recap: December 1 – 5, 2025

Well, it’s been a whole week! If you blinked in the early trading days of December, you might have missed the dollar’s worst multi-day slide since September, sparked by some surprisingly dire US jobs data that sent traders scrambling for further Fed rate cuts. Meanwhile, on the downside, the Aussie dollar made one of the week’s most impressive comebacks, with a disappointing GDP miss to close. as the most effective major currency? Friday’s employment surprises North American jobs, turning laggards into leaders in a matter of hours, while US jobless claims hit a three-year low, creating one of those stunning moments when everyone wonders what the Fed is all about. will actually be done next week. Let’s break down how each major currency has managed this turbulent period and what catalysts led to this action.