📉 USD Retreats After Warsh Nomination — What Traders Need to Know

The U.S. dollar briefly rallied after Kevin Warsh’s nomination as Fed Chair, as markets priced in a more hawkish leadership. That move quickly faded as fundamentals remained unchanged.

🔎 Key Points:

• No shift in Fed policy, rates, or liquidity

• Rally was headline-driven, not macro-driven

• USD continues to underperform G10 currencies YTD

📊 Trading Bias:

• DXY: Bearish — sell rallies

• EUR/USD: Bullish

• GBP/USD: Bullish

• AUD/USD: Bullish

• USD/JPY: Bearish

• USD/CHF: Bearish

⚖️ Market Regime:

Current positioning remains RISK-ON

• USD weakness supports equities, crypto, and high-beta FX

• Markets rejecting tighter-policy narrative

🔁 What Would Change the Bias:

• Inflation surprise (CPI / PCE)

• Clear Fed tightening signal

• Liquidity contraction or major risk event

🧠 Takeaway:

Personnel changes don’t move markets.

Policy changes do.

Trade the macro, not the headline.

#USD #DXY #FederalReserve #Macro #Forex

#RiskOn #MarketAnalysis #Trading

#Crypto #Bitcoin #Ethereum

#Liquidity #GlobalMarkets #FX