US Dollar Softens as December Fed Rate-Cut Bets Rise on Hassett Nomination as Next Fed Chair

The US dollar weakened after a five-week run-up as macro data reinforced expectations for a December Federal Reserve rate cut ahead of the policy decision next week. The ADP private-sector payrolls undershot expectations, and the ISM services PMI signaled easing price pressures, helping tilt markets toward a more dovish stance. LSEG data assign an approximate 85% probability of a December cut, underscoring a macro backdrop that is supportive for risk assets, including crypto markets.

For crypto markets, the softer USD and the shift toward rate-cut expectations can bolster risk appetite and influence inflows into Bitcoin and Ethereum. Many analysts note that macro liquidity dynamics tend to drive cross-asset moves when policy paths become clearer, with on-chain activity responsive to macro cues.

Looking ahead, investors will closely watch central-bank communications for guidance on the policy path as December decisions approach. The focal points remain Fed rate cut expectations, USD trajectory, and liquidity conditions, shaping near-term volatility in crypto markets.