Attention forex traders! As we kick off Monday, December 22, 2025, let's dive into the market's early indications and explore what's on the horizon. But here's a crucial point: market liquidity is incredibly thin, especially during the holiday season. Prices can be unpredictable, so tread carefully!
Many wholesale market participants have already closed shop for the holidays, which significantly impacts liquidity and market accessibility. If you're a retail trader, this period until January 5th might be a bit bumpy. Consider your trading strategy and whether it's worth the risk. It might be wiser to preserve your capital and gear up for the new year's opportunities.
At investingLive, we'll be here, but with reduced coverage until January 5th. So, let's take a look at the indicative forex prices for today:
- EUR/USD: 1.1719
- USD/JPY: 157.69 (Check out our article on the disastrous day for the yen and its impact on Japanese officials)
- GBP/USD: 1.3391
- USD/CHF: 0.7947
- USD/CAD: 1.3795
- AUD/USD: 0.6611
- NZD/USD: 0.5750
Now, let's talk about the calendar. It's pretty sparse, but one event stands out: China's Loan Prime Rates (LPRs) decision. Here's the lowdown:
China's LPRs have remained unchanged since November 2025, marking the sixth month without any adjustments. The one-year LPR is at 3.0%, and the five-year LPR (for mortgages) is at 3.5%. Most lending in China is tied to the one-year rate, while the five-year rate guides mortgage pricing. Both rates were last trimmed in May, by 10 basis points.
Here's a look at the LPR changes since early 2022:
| Date | One-year LPR | Five-year LPR | Change | Notes |
| --- | --- | --- | --- | --- |
| May 2025 | 3.00% | 3.50% | -10bp | Latest cut; both 1Y and 5Y trimmed. |
| Feb 2024 | 3.45% | 3.95% | -25bp (5Y only) | Big mortgage-linked cut to support the property sector. |
| Aug 2023 | 3.45% | 4.20% | -10bp (1Y), -15bp (5Y) | Coordinated easing to counter weak growth. |
| Jun 2023 | 3.55% | 4.20% | -10bp (1Y), -10bp (5Y) | First LPR cut since Aug 2022. |
| Aug 2022 | 3.65% | 4.30% | -5bp (1Y), -15bp (5Y) | Targeted mortgage support. |
| Jan 2022 | 3.70% | 4.60% | -10bp (1Y), -5bp (5Y) | Part of the early 2022 easing cycle. |
China's main policy rate is now the reverse repo rate, currently at 1.4% for the 7-day. The 7-day rate acts as a key benchmark, influencing other lending rates, including the LPRs. The People's Bank of China (PBOC) uses open market operations to manage liquidity and interbank lending rates.
And there you have it! A quick glimpse into the forex market and China's monetary policy. Remember, trading during the holidays can be risky, so stay informed and make smart decisions.
What's your take on the market's liquidity during this period? Do you think it's a good time to trade, or should traders focus on preserving capital? Share your thoughts in the comments!
