1 December 2022 | Other

US dollar weakens on expectations that Fed will slow pace of coming interest rate hikes

The dollar is declining after Federal Reserve Chairman Jerome Powell’s speech. He confirmed Wednesday that the Federal Open Market Committee (FOMC) might scale back the pace of the interest rate hikes at its December meeting. 

Speaking at the Brookings Institution in Washington, Powell highlighted that such a decision would allow them to balance risks. 

Joe Perry, senior market analyst at FOREX.COM in New York, commented on the Fed Chairman's speech. As reported by him, Powell clearly signaled that the FOMC would opt for smaller increases. He believes that stocks rose and the dollar began to weaken amid these comments.

The Federal Reserve is expected to downshift in December to deliver a 50-basis-point interest rate hike at its December 13-14 policy meeting.

The ADP jobs report also pushed the US dollar lower. The data showed that private sector employment increased much less than expected in November. According to the other data, the number of available jobs in the US in October dropped. 

Company MarketCheese
Period: 31.12.2025 Expectation: 1000 pips
Selling GBPUSD following yesterday’s BoE meeting
07 November 2025 33
Brent sell
Period: 21.11.2025 Expectation: 300 pips
Brent crude pulls back and gives up its previous gains
07 November 2025 29
Period: 10.11.2025 Expectation: 1300 pips
Selling GBPUSD down to 1.30160
06 November 2025 32
Period: 14.11.2025 Expectation: 300 pips
Golden cross signals potential gas rally
06 November 2025 78
Period: 11.11.2025 Expectation: 600 pips
USDCAD is poised to test six-month high at 1.417
05 November 2025 61
Period: 30.04.2026 Expectation: 11000 pips
GBPUSD selloff on weaker UK economic data
05 November 2025 36
Go to forecasts