USD faces pressure as Fed rate cut looms – DBS
The US Dollar (USD) enters December under pressure, with markets heavily pricing in a Fed rate cut next week amid a softer labor market and the scheduled end of quantitative tightening, DBS' Senior FX Strategist Philip Wee notes.

The US Dollar (USD) enters December under pressure, with markets heavily pricing in a Fed rate cut next week amid a softer labor market and the scheduled end of quantitative tightening, DBS' Senior FX Strategist Philip Wee notes.

USD eyes year-end weakness ahead of FOMC

"The USD is entering the final month of 2025 with heavy expectations that the Fed will cut interest rates at next week’s FOMC meeting on December 10."

"US Labor Secretary Lori Chavez-DeRemer, Fed Presidents John Williams (New York) and Mary Daly (San Francisco) judged that the risks from a softening labor market outweighed the rationale for holding rates high for longer amid weaker demand and tightening credit conditions."

"The Fed is also scheduled to end quantitative tightening on December 1 by reinvesting maturing securities instead of letting them roll off."

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