Hassett Fed Chair Speculations Drive Markets; Focus on ADP/ISM Data

The EUR/USD pair extended gains on Tuesday, supported by improving risk appetite and growing expectations of Federal Reserve easing in December.

Market sentiment improved throughout the day, with US equities finishing higher and cryptocurrencies staging a modest recovery. The US Dollar lost momentum late in the session after President Donald Trump referred to Kevin Hassett as a “potential” candidate for the role of Federal Reserve Chair during a press conference.

A light US data calendar kept investors focused on Monday’s ISM Manufacturing PMI, which showed further slowing in November. The report highlighted weakening business activity, cooling labor market conditions, and rising input prices.

In the Eurozone, the latest inflation figures offered a mixed picture, but the data had a limited immediate impact on the currency pair. Geopolitical tensions in Eastern Europe remain a key downside risk, particularly after Russian President Vladimir Putin reiterated that Europe’s demands are “unacceptable” and warned that Russia is prepared for further escalation.

Looking ahead, traders will turn their attention to the Eurozone’s HCOB Flash PMI readings for November, the bloc’s Producer Price Index, and upcoming comments from ECB policymakers. In the US, the focus will shift to S&P Global and ISM Services PMI data, followed by Challenger job cuts and weekly jobless claims on Thursday.

President Trump added to market volatility after stating he would appoint a successor to Chair Jerome Powell in early 2026—comments that initially strengthened the Dollar.

Bitcoin climbed back above the $93,000 level early on Wednesday, staging a sharp recovery from Monday’s steep selloff that briefly pushed the cryptocurrency near $84,000. The rebound was fueled by improved regulatory signals in the United States and rising expectations of an imminent Federal Reserve rate cut.

Market sentiment improved following remarks from U.S. Securities and Exchange Commission Chair Paul Atkins, who reaffirmed the agency’s plan to introduce a new regulatory structure for digital-asset firms. The proposed “innovation exemption” is intended to offer clearer guidelines around issuance, custody, and trading—part of a broader effort to modernize crypto oversight.

Institutional confidence also received a lift after Vanguard, the world’s second-largest asset manager, reversed its long-standing position and announced it would begin allowing trading of cryptocurrency-focused ETFs and mutual funds on its brokerage platform. The decision broadens access to regulated crypto investment products for millions of retail and institutional clients and underscores the asset class’s expanding acceptance within mainstream finance.

Oil prices retreated on Tuesday, with traders assessing diminishing optimism around Russia-Ukraine peace negotiations alongside renewed worries about a potential supply glut.

Sentiment turned cautious after Russian President Vladimir Putin met in Moscow with U.S. President Donald Trump’s special envoy Steve Witkoff and senior adviser Jared Kushner. Hopes that the discussions might advance peace efforts tempered concerns about continued supply restrictions.

Mixed signals from Moscow added to the uncertainty. Ahead of the meeting, Putin warned European nations that Russia was prepared for conflict if provoked and threatened to cut off Ukraine’s access to the sea following drone strikes on tankers from Russia’s so-called shadow fleet in the Black Sea.

Putin is slated to begin a two-day trip to India on Thursday, where he is expected to promote increased Russian oil purchases as well as defense sales. The effort aims to rebuild commercial ties that have come under strain from U.S. pressure on New Delhi.

Over the weekend, a Ukrainian drone strike disrupted operations at the Caspian Pipeline Consortium’s Black Sea terminal; shipments from one mooring point have since resumed. In a separate incident, a Russia-flagged tanker carrying sunflower oil was hit by a drone off the Turkish coast on Tuesday. Meanwhile, President Trump’s declaration that Venezuelan airspace should be considered closed injected fresh uncertainty for flows from the South American producer.

U.S. inventory data also pointed to rising stockpiles. According to the American Petroleum Institute, crude inventories increased by 2.48 million barrels in the week ending November 28. Official figures from the U.S. Energy Information Administration are due Wednesday.

U.S. equities finished modestly higher on Tuesday, led by renewed strength in technology shares as investors increased their expectations for a Federal Reserve rate cut next week.

Weaker-than-expected manufacturing data from the Institute for Supply Management added to evidence of cooling economic momentum, reinforcing expectations that policymakers may move to ease rates at the Dec. 9–10 meeting.

Anticipation has been fueled by moderating inflation readings, softening activity indicators, and recent comments from senior Federal Reserve officials hinting that loosening monetary policy could begin sooner than previously signaled.

Speculation around leadership succession at the Fed has also grown, with the White House weighing several candidates to replace Chair Jerome Powell when his term ends next year. Reports last week indicated that economic adviser Kevin Hassett has become the leading contender.

In corporate news, Media reports this week suggested Marvell is in advanced talks to acquire Celestial AI in a multibillion-dollar cash-and-stock agreement, potentially expanding its footprint in custom and networking chip design.

Dell Technologies traded higher after President Donald Trump publicly praised the Dell family for a large philanthropic pledge. Michael and Susan Dell committed $6.25 billion—equivalent to $250 each for 25 million children under age 10—to fund investment accounts under the administration’s “Invest America” initiative.

Boeing shares rallied 10% after the company projected it would return to positive free cash flow in 2026. The aerospace manufacturer also secured a $104.4 million U.S. Navy contract to service aircraft display systems.