Dollar Drifts, Loonie Slips — When Sitting Out Is the Smartest Trade

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FX Rocket Profits
September 18, 2025

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Dollar Drifts, CAD Slips & The Wisdom of Waiting

Markets are in full pre‑FOMC mode, with the dollar extending its slide despite stronger‑than‑expected U.S. retail sales. Traders are laser‑focused on the Fed’s looming decision, keeping risk appetite buoyant. Gold notched another record above $3,700, while oil surged nearly 2% on supply jitters and geopolitics.

North of the border, Canada’s August CPI showed headline inflation cooling to 1.9% y/y, but core measures stuck near 3%. The Loonie still weakened as traders priced in an 87% chance of a BoC cut, underscoring how headline misses can outweigh sticky underlying pressures.

And beyond the data, a reminder from trading psychology: sometimes the best trade is no trade. Sitting on the sidelines when you’re out of sync, on a losing streak, or facing uncertain catalysts can protect both your account and your confidence.

⚡Daily Broad Market Recap – September 16, 2025

  • Dollar fell again as markets priced in a Fed cut despite upbeat U.S. retail sales (+0.6% m/m).

  • Gold hit fresh record highs near $3,700; oil jumped nearly 2% on supply concerns.

  • Risk currencies (AUD, NZD) gained on China’s new consumption‑boosting policies.

🔥Canadian Dollar Slid Despite Sticky Core Inflation

  • Headline CPI rose to 1.9% y/y (vs. 2.0% expected); core inflation stuck near 3%.

  • CAD weakened broadly as traders priced in a BoC cut, despite sticky underlying pressures.

  • Loonie finished mixed: weaker vs. EUR, GBP, CHF, JPY; firmer vs. AUD, NZD, USD.

📊 4 Tips on Handling Your First Losses on a Live Trading Account

  • Times to step back: when you’re out of sync, on a losing streak, facing uncertain catalysts, or odds are stacked against you.

  • Sitting out isn’t laziness — it’s risk management and discipline.

This issue blends macro catalysts with trading psychology. The dollar’s drift, CAD’s slip, and gold’s surge show how markets are positioning ahead of central bank decisions. But the deeper lesson is timeless: knowing when not to trade is as powerful as spotting the perfect setup.

Happy Trading!

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