FxScouts Publishes Q4 2025 Forex Market Report

Policy Uncertainty and Market Volatility in Focus

STOCKHOLM, SWEDEN, January 15, 2026 /EINPresswire.com/ -- FxScouts has published its Q4 2025 Global Forex Market Report, highlighting a decisive shift in global currency markets as uncertainty surrounding US monetary policy, institutional credibility, and asset valuations intensified into year-end.

While the third quarter marked an initial loss of confidence in US institutions, the Q4 report finds that markets moved beyond episodic risk aversion toward a broader reassessment of US assets themselves. Currency movements during the quarter were increasingly driven by capital reallocation rather than traditional risk-on, risk-off dynamics.

“The fourth quarter was not defined by shock events, but by their consequences,” said Christopher Cammack, Partner Manager & Senior Financial Analyst at FxScouts. “With policymakers divided, economic data disrupted, and equity markets volatile yet fully invested, markets were forced to price uncertainty directly into currencies.”

Key Findings from the Q4 2025 Report Include:

Sustained Pressure on the US dollar — The USD's struggles were driven by two Federal Reserve rate cuts delivered amid disrupted economic data and policy divisions, undermining confidence in the Fed’s reaction function.

A Breakdown in Safe-haven Dynamics — Heightened US equity market volatility - driven by fears of an AI bubble and policy uncertainty - failed to generate sustained demand for the dollar.

Clear Evidence of Capital Reallocation — With relative stability in Europe supporting the euro, gold continuing to attract structural demand, and crypto assets were repriced sharply as high-beta risk instruments.

Looking ahead to Q1 2026 and beyond, markets are entering the new year focused less on shock events and more on whether the shifts seen in 2025 represent a lasting regime change. With confidence in US institutions more fragile than ever, equity valuations elevated, and global capital flows adjusting, the outlook points to continued pressure on the dollar, selective opportunities in emerging markets, and elevated volatility across risk assets. The report also provides detailed technical analysis and event-driven timelines for major assets including EUR/USD, USD/JPY, gold, the S&P 500, and Bitcoin.

“As 2026 begins, markets are no longer reacting to sudden shocks,” Cammack added. “Trust — in institutions, information, and valuations — remains the dominant driver and further volatility is very likely as a result.”

About FxScouts

Founded in Stockholm in 2011, FxScouts Group AB provides independent broker reviews, in-depth market analysis, and practical trading education for traders worldwide. FxScouts is committed to independence, transparency, and continuous improvement, helping traders navigate evolving market conditions with confidence.

Malin Cammack
FxScouts Group AB
email us here

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