FX Weekly Recap: December 1 – 5, 2025

Well, that was quite a week! If you blinked during the first trading days of December, you might have missed the dollar’s worst multi-day tumble since September—triggered by some surprisingly awful U.S. employment data that had traders scrambling to price in more Fed rate cuts.

Meanwhile, down under, the Australian dollar pulled off one of the week’s most impressive comebacks, shrugging off a disappointing GDP miss to finish as the top-performing major currency.

The real plot twist? Friday’s employment surprises on both sides of the North American border. Canada’s jobs report absolutely crushed expectations, flipping the loonie from laggard to leader in the span of a few hours, while U.S. jobless claims hit a three-year low—creating one of those head-scratching moments where conflicting data leaves everyone wondering what the Fed will actually do next week.

Let’s break down how each major currency navigated this turbulent stretch and what catalysts drove the action.