There’s a shift happening this week, and if you’re trading the US Dollar, you need to pay close attention.
Some key voices inside the Federal Reserve have started sounding softer. It’s subtle, but it’s enough to make the market pause and reassess where the Dollar is heading.
Fed’s Bostic mentioned that inflation is “moving in the right direction” and that the Fed could afford to be patient. Daly echoed a similar sentiment, saying that aggressive rate hikes are probably behind us.
As someone who actively manages capital in the forex market, I’ve learned to respect these moments, not overreact, but not ignore them either.
What’s happening to the USD?
Since late last week, we’ve seen some weakness creeping into the Dollar Index (DXY). It’s not a full-blown reversal, but it’s definitely losing momentum.
Traders are starting to position for a potential pause, or even an early rate cut. That’s a big deal.
When the Fed softens its tone, it opens the door for other currencies, especially the Euro, Pound, and Gold, to fight back after being pressured for weeks.
🔍 My View as a Trader
I’m not the type to chase news blindly, but this feels like one of those early signals that can shape the next two to three weeks of trading.
For me, these are the setups I’m keeping a close eye on:
EUR/USD: Reclaiming bullish structure, any clean retracement looks like a buy opportunity
XAU/USD (Gold): Strong bounce, with more upside if the Dollar continues to weaken
USD/JPY: Reversal in the making if bond yields keep sliding
I won’t rush in, but I will prepare.
This is the difference between guessing and trading with edge, waiting for clarity, not chaos.
🧠 Final Thoughts
The Fed isn’t cutting rates yet, but when they shift tone like this, smart traders listen.
This is the week to be selective, watch how the market reacts to US data, and let price confirm the narrative.
And remember, you don’t need to trade every setup, you just need to catch the right one.
Stay focused, stay patient.
— Ajmal Idlan
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