Phase 10 // Course Syllabus Chapter

The Dollar Cycle — Risk-On and Risk-Off Asset Rotation.

Part of our masterclass path. We systematically cover risk, logic, and mechanics to build professional edge.

Edge Tier Access 25 min read / 15 min video
01_Curriculum_Brief

What is covered in this chapter

The Global Reserve Currency

The US Dollar (USD) is the cornerstone of the global financial system, involved in nearly 90% of all foreign exchange transactions. To trade any currency, commodity, or index, you must understand the Dollar Cycle and how it dictates risk rotation.

Risk-On vs. Risk-Off Dynamics

  • Risk-On (Equities and High-Yield FX Rally): When global economic growth is strong and stable, investors seek higher returns. They sell the safe-haven US Dollar and buy riskier assets like equities, commodities, and high-yield currencies (such as the AUD or NZD). The Dollar depreciates.
  • Risk-Off (Safe-Haven Flows): When geopolitical tensions rise, inflation spikes, or global growth slows, investors panic. They liquidate their risky assets and buy safe-havens, primarily the US Dollar and US Treasury bonds. The Dollar appreciates.

We analyze the Dollar Index (DXY) to gauge global risk sentiment, helping you align your trade selection with macro asset rotation.

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