FedWatch: 89.2% Odds of a 25bp Fed Cut in December, 66.6% Likelihood of a Cumulative 25bp Cut by January

COINOTAG News reports that, ahead of today’s ADP release, CME’s FedWatch probabilities put an 89.2% likelihood on a 25bp Fed rate cut in December and a 10.8% probability of no change. Market expectations also assign a 66.6% odds of a cumulative 25bp cut by January next year, with a 7.7% likelihood of an unchanged stance and a 25.7% probability of a 50bp total cut.

These CME-implied probabilities signal a shift in monetary policy expectations that could influence risk assets and liquidity. For the cryptocurrency market, a softer path for policy and a potential dollar deprecation scenario may bolster interest in digital assets, though traders should remain disciplined and monitor the upcoming ADP data and payrolls to reassess positioning.