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
Gold sell
Period: 25.06.2026 Expectation: 2100 pips
Sell gold with $4,110 in sight as Fed stays hawkish
Today at 06:40 AM 13
Period: 30.06.2026 Expectation: 400 pips
Покупка USDJPY до уровня 160,00
Today at 05:26 AM 27
Period: 31.12.2026 Expectation: 1800 pips
Invest in SPX with $7,700 in view
Today at 04:47 AM 9
Period: 30.06.2026 Expectation: 1500 pips
Buying Brent crude from $72.5 per barrel
Today at 04:47 AM 11
Period: 24.06.2026 Expectation: 720 pips
USDCAD shows signs of continued rally after exiting overbought territory
Yesterday at 12:00 PM 23
Period: 24.06.2026 Expectation: 750 pips
Buying EURUSD ahead of Fed rate decision
Yesterday at 10:44 AM 25
Go to forecasts