US dollar firms ahead of key Fed decision

Monday, December 08, 2025 at 15:49 UTC+01:00 (+0100), United States/Japan, New York/Tokyo

News category : Commodity and Currency Events

On December 8, 2025, currency markets saw the US dollar gain ground against major peers as investors repriced expectations for the upcoming Federal Reserve policy decision. According to Reuters market coverage, the dollar’s advance reflected anticipation that the Fed may ease interest rates by a smaller magnitude than previously expected, given mixed incoming economic data. The strengthening of the dollar came alongside heightened market attention on central bank meetings ahead in the week, including the Federal Reserve, Reserve Bank of Australia, and others. Additionally, a powerful magnitude 7.6 earthquake struck northeastern Japan late on Monday, triggering temporary disruption in regional markets and contributing to safe-haven flows into the US currency. The combination of monetary policy repricing and unexpected natural events influenced bond yields, equity sentiment, and cross-currency dynamics, underscoring market sensitivity to policy signals and risk events as year-end approaches.

Overall market impact

Mild bullish market impact - strength score : 75/100

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

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Impacted instruments :

USD FX

US Treasuries

Equity indices

JPY FX

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