Rate cut expectations rise, the US dollar remains weak amid multiple bearish factors



On December 4, the US dollar remained weak after hitting a five-week low in the previous trading session. This was due to US economic data and news regarding the next Federal Reserve Chair, which boosted expectations for a rate cut ahead of next week’s rate decision. On Wednesday, the ADP private sector employment report came in weaker than expected, and ISM services data showed that price pressures have eased.

These data were released after Trump hinted that he would nominate Hassett as the next Federal Reserve Chair. According to LSEG data, markets are pricing in an 85% probability of a Fed rate cut in December. (Jin10)
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