Dollar heads for worst week as Fed cut probability rises

Friday, November 28, 2025 at 15:00 UTC+01:00 (+0100), United States, N/A

News category : Commodity and Currency Events

On November 28 the US dollar slid toward its worst weekly performance in months after Fed funds futures priced a materially higher probability of a rate cut at the upcoming Fed meeting. Analysts pointed to a string of softer data and dovish remarks from some Fed officials as the catalyst for the move. The dollar depreciation supported emerging market currencies and reduced hedging costs for some international investors. Currency strategists warned that the dollar's path remains sensitive to incoming US data and political developments, and that volatility could pick up as markets firm a view on the timing and magnitude of Fed action.

Overall market impact

Light bearish market impact - strength score : 68/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

USD currency pairs

Emerging market FX

Currency carry trades

US dollar-denominated bonds

FX volatility products

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