#FedRateCutAffectsDollarTrend If you're trading forex and want to avoid losses from a Fed rate cut, you need to manage risk effectively. Here’s how you can avoid getting caught off guard by a Fed rate cut: 1. Stay Ahead of the News Track the FOMC meeting schedule and Fed speeches. Watch economic indicators like inflation (CPI, PCE), employment data, and GDP growth—these influence rate decisions. Follow market expectations via the CME FedWatch Tool, which shows rate cut probabilities. 2. Reduce Exposure Before a Fed Decision Avoid holding large USD positions before the announcement. If uncertainty is high, hedge your trades or move to safer assets. 3. Trade Based on Expectations, Not Just the Cut Itself If a rate cut is fully priced in, the dollar may not weaken much. If the Fed cuts more than expected, the USD can drop sharply. If they delay cuts, the dollar may strengthen unexpectedly.