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    In September, the year-on-year personal consumption expenditures price index in the United States met expectations at 2.8%

    by VT Markets
    /
    Dec 5, 2025
    **Currency Movements** Cryptocurrencies are showing strength, with Bitcoin stabilizing above $91,000 and Ethereum staying above $3,100. This comes right before the Federal Reserve’s monetary policy meeting, which is expected to include a rate cut. Ripple dropped to $2.06, even though other cryptocurrencies are performing well. Market sentiment indicates some challenges. The upcoming central bank meetings for the RBA, BoC, and SNB are not expected to bring any surprises but will be closely monitored. **Federal Reserve Meeting Focus** In the coming days, all eyes are on the Federal Reserve’s meeting on December 10th. The September PCE inflation report showed a 2.8% increase, confirming the cooling trend we’ve noticed. Markets are gearing up for a third consecutive interest rate cut. The market has largely priced this in, with Fed funds futures showing over an 85% chance of a further 25-basis-point reduction. This expectation is why the US Dollar has struggled to gain momentum, even with some recent slight rebounds. US Treasury yields have been decreasing for months, reflecting this shift in policy. For traders in derivatives, the rate cut news is no longer new; the focus now is on future guidance. The VIX index remains steady around 17, indicating more uncertainty than we experienced in the calm of 2024. Options are priced for a significant move after the announcement. We think it’s important to prepare for surprises in the Fed’s dot plot or statements, as a dovish confirmation could lead to a drop in volatility. Create your live VT Markets account and start trading now.

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