Dollar softens as Fed cut pricing gains traction

Monday, December 01, 2025 at 15:45 UTC+01:00 (+0100), United States, N/A

News category : Commodity and Currency Events

On December 1 the greenback retreated after futures markets priced in a higher probability of a December policy easing by the Federal Reserve. The move supported a number of emerging-market currencies and encouraged flows into higher-yielding assets as interest-rate differentials narrowed. Market strategists noted the dollar's path remains highly data dependent and sensitive to both U.S. macro releases and Fed communication. Currency desks flagged the potential for renewed volatility if incoming prints diverge from the softer picture now reflected in pricing.

Overall market impact

Mild bearish market impact - strength score : 70/100

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

USD-denominated bonds

FX volatility products

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