The State of the Union address and 10 Fed speeches create cross-currents in forex markets. For traders funded with Apex Trader Funding, NextGenPro Trader, PropShopTrader, Aqua Futures, or Earn2Trade, this requires careful correlation management.
Key Drivers:
- DXY: State of the Union tone on trade policy will dominate short-term direction
- EUR/USD: Sensitive to US political risk and Fed speaker commentary
- JPY: Risk-off flows if political tensions escalate
Events to Watch:
- Tue: State of the Union address trade policy announcements critical
- Fed Speakers: Waller (Mon), Goolsbee (Tue), Bostic (Tue), Collins (Tue), Cook (Tue), Barkin (Wed), Musalem (Wed), Bowman (Thu), Jefferson (Fri)
- Core PPI (Fri): Inflation data could shift Fed expectations
Your Strategy:
- Avoid new positions 1 hour before/after State of the Union address
- Favor JPY crosses for risk-off plays if political tensions escalate
- Use tight stops during Fed speech cluster
- Reduce EUR/USD exposure until after political events
Political Context:
The divided Congress creates uncertainty about trade policy direction. Fed speakers will provide clues about March rate decision amid political backdrop.
In volatile weeks, correlation awareness is your edge. For forex prop traders, position sizing matters more than prediction during political event weeks.
