As is usual for a Monday morning, market liquidity is very thin until it improves as more Asian centres come online … prices are liable to swing around, so take care out there.
Do be aware that many wholesale market participants have closed now for the holiday period. This is partially because they have closed for the holiday period (d’uh) and partially because others have closed so liquidity and market tradability have diminished. If you are a retail trader it’ll pay to take extra care right through now until January 5, the absence of the other time frame (OTF) until then will make trading more choppy. If that’s your bag, great, but if not your time may be better spent and capital preserved for ammo for the new year. We’ll still be around, but not quite so much.
After all that, early indications, not too much change from late Friday is showing.
- EUR/USD 1.1719
- USD/JPY 157.69
- GBP/USD 1.3391
- USD/CHF 0.7947
- USD/CAD 1.3795
- AUD/USD 0.6611
- NZD/USD 0.5750
As for the calendar, its nearly empty. Even that People’s Bank of China rate setting is a non-event, more on this below:
China’s Loan Prime Rates (LPRs) were held steady in November 2025, , marking the sixth consecutive month without a change
- the one-year LPR at 3.0%
- and the five-year LPR (for mortgages) at 3.5%
Most lending in China is tied to the one-year LPR, while the five-year rate guides mortgage pricing. Both rates were last trimmed by 10 basis points in May.
A look at the past changes in the LPR, since early 2022:
China’s main policy rate is now the reverse repo rate, currently at 1.4% for the 7-day.
The 7-day rate serves as a key policy benchmark, influencing other lending rates like the Loan Prime Rates (LPRs). The PBOC uses these open market operations to inject or absorb funds, influencing interbank lending rates
