Last week’s forex action kept traders at every forex prop firm alert, as inflation concerns and volatile price swings reshaped the landscape. The U.S. jobs report reignited the dollar’s momentum, signaling to prop traders that rate cuts aren’t guaranteed and inflation remains the main market driver.
Markets went into last week with a bullish tone. Stock indices, particularly Germany’s DAX, hit record highs before cooling off. Across the Atlantic, the European Central Bank pulled the trigger on a 0.25% rate cut. Traders reacted like caffeine-deprived interns—excited at first, then disillusioned. The euro and pound soared briefly post-ECB press conference before giving most of it back.
Meanwhile, the Bank of Canada held its ground. No surprises there. The Loonie barely blinked.
But the real mood swing came from the U.S. jobs report. With 139,000 new jobs and a strong 0.4% increase in hourly earnings, traders readjusted their Fed timeline. Rate cuts? Not so fast. The dollar rebounded, equity markets paused, and risk appetite flickered.
The U.S. Dollar Index printed a bullish pin bar off key support—traders are whispering “double bottom,” but the chart still screams “bearish trend.” Unless we break resistance convincingly, shorting the greenback remains the longer-term thesis. Still, don’t expect a one-way street. GBP/USD told its own story: a new three-year high early in the week, then a bearish reversal by Friday. Is it a classic failed breakout or just consolidation before another leg up? Bulls want a clean daily close above 1.3616 before rejoining the party.
Silver had no such identity crisis. It clocked a 13-year high last week and closed near it, despite a minor Friday pullback. Unlike Gold, which is still doing its best impression of a snoozing cat, Silver has momentum—and fundamental support. A persistent supply-demand gap and rising industrial demand make this rally feel stickier than past flashes.
This week, traders are bracing for a flurry of high-impact U.S. data: CPI, PPI, and consumer sentiment numbers. Inflation will set the tone, not just for the dollar but for broader risk sentiment.
Also on the docket:
With volatility picking up, we could see real breakouts—or whiplash.
If you’re itching to get off the sidelines, a few setups stand out:
The dollar’s not dead yet, Silver’s partying like it’s 2011, and central banks are trying to telegraph calm while data throws curveballs. Inflation this week could reset the entire market tone, so stay nimble and think twice before trusting early moves.
Now’s not the time for autopilot trading. Eyes up, fingers ready. If you want to deepen your edge, check out our blog on how elite prop traders are rewriting the forex playbook — it dives into advanced strategies that top prop firms use to spot high-probability trades.
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If markets were a poker game, prop trading desks are pushing chips to the center today. Asian equities are rallying, the US dollar just blinked at a key support level, and silver is strutting around like it’s 2011 again. Underneath the headlines? A subtle but meaningful shift in sentiment—and prop traders are sniffing it out early.
If the forex market had a mood ring today, it would be flashing amber. The US Dollar is showing strength, the Australian Dollar is slipping, and equities are hitting a wall.
The New Zealand dollar is staging a comeback that would make the All Blacks proud—powerful, unexpected, and hard to ignore. NZD/USD has clawed its way up to 0.5631 after bouncing off last week’s low of 0.5542. Not a moonshot, but enough movement to turn heads on a one step evaluation prop firm dashboard.
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