U.S. Dollar Faces Volatility Amid Thanksgiving Market Closure

Key Points:

  • Thanksgiving closure affects liquidity, dollar retreats from highs.
  • This week marks the dollar’s largest decline since July.
  • Potential Fed leadership changes impact dollar strategies.

The U.S. markets closed for Thanksgiving, impacting liquidity and spiking volatility as the dollar dips from a six-month high, facing its largest decline since July.

Reduced dollar appeal amid potential Fed leadership shifts influences global currency positioning, emphasizing a strategic pivot away from long dollar positions for 2026.

Thanksgiving Closure Triggers Dollar’s Largest Decline Since July

The U.S. market’s Thanksgiving closure led to less liquidity and more volatility. The dollar’s pullback from its peak comes after recent high levels not seen in six months. Economic observations suggest the event may influence future currency strategy deliberations.

Experts such as Brent Donnelly expressed concerns, stating that depreciating dollar strategies would align with Hassett’s potential Fed measures. Financial commentary suggests a possible shift in global safe haven preferences toward the Euro.

“If White House economic advisor Hassett, who advocates for interest rate cuts, is appointed as the next Fed chairman, it would be unfavorable for the dollar,” said Donnelly.

Fed Speculation: Potential Impact on Dollar Strategies

Did you know? Past periods with predicted Federal Reserve easing and leadership transitions have exerted similar pressures on the U.S. dollar, prompting strategic shifts towards international currencies like the Euro.

As of November 27, 2025, Bitcoin (BTC) stands at $91,620.73, with a market cap of $1.83 trillion, according to CoinMarketCap. Its recent 24-hour gain is 5.53%, while facing slight 7-day increases of 0.12%. Longer-term trends show a 30-day decrease of 19.96%.

bitcoin-daily-chart-4601

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 09:52 UTC on November 27, 2025. Source: CoinMarketCap

The Coincu research team underscores that the current dollar volatility may prompt regulatory adjustments that could deter risk-averse investors from USD reliance. Historically, such fiscal uncertainty encourages diversification into decentralized technologies.

Source: https://coincu.com/markets/us-dollar-thanksgiving-volatility/