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
Brent sell
Period: 11.07.2025 Expectation: 400 pips
Brent falls ahead of OPEC+ decisions
Yesterday at 10:05 AM 28
Period: 18.07.2025 Expectation: 900 pips
AUDCAD is likely to keep pulling back from its monthly high
Yesterday at 08:08 AM 28
Period: 10.07.2025 Expectation: 1200 pips
Selling USDJPY during rebound with 142.430 target
03 July 2025 53
Period: 11.07.2025 Expectation: 220 pips
Heatwaves across Europe and US support gas price recovery from recent lows
03 July 2025 144
Period: 08.07.2025 Expectation: 1500 pips
EURUSD rally faces potential correction toward 1.165
02 July 2025 78
Period: 09.07.2025 Expectation: 1400 pips
USDCAD declines amid US dollar weakness and improving Canadian trade prospects
02 July 2025 54
Go to forecasts