In July 2024, the International Monetary Fund (IMF) released its World Economic Outlook Update, cutting expectations for global growth to 3.2 %.
The tone was clear — inflation in the services sector remained sticky, central banks might need to keep rates higher for longer, and global trade momentum was slowing.
Almost immediately, risk sentiment weakened. Equity markets cooled, commodity currencies fell, and the U.S. dollar surged as investors sought safety.
“It was one of those weeks when every headline changed the mood of the market,”
explains Jaxon Reid, professional trader at Nexa Level X.
“The volatility was uncomfortable for many, but that’s exactly where opportunities hide.”
How the IMF Outlook Impacted Major Forex Pairs
EUR / USD
The euro struggled as investors rotated back to the dollar.
ECB’s dovish tone added pressure, pushing the pair from around 1.0950 → 1.0830.
Traders anticipated slower growth in the Eurozone, while U.S. data still looked resilient.
USD / JPY
The yen weakened briefly but then recovered sharply as risk sentiment deteriorated.
Safe-haven demand lifted JPY, while U.S. yields flattened on growth fears.
The pair swung from 162.3 → 159.8, testing key technical support.
AUD / USD
As one of the most sensitive pairs to global demand, AUD/USD dropped the hardest.
The Aussie fell nearly 2 %, from 0.6780 → 0.6640, pressured by weaker commodity prices and slower Chinese activity.
How Jaxon Reid Captured the Move
While most traders hesitated, Jaxon Reid saw the IMF report as a catalyst.
He combined fundamental analysis (reading the macro shift) with technical discipline (trading confirmed breakouts).
“I noticed AUD/USD and EUR/USD breaking below their weekly support levels on higher volume.
Instead of chasing the move, I waited for a small pullback and shorted both pairs with tight stops.”
His strategy was simple but precise:
Short EUR/USD and AUD/USD on retracements after confirmed breakdowns.
Partial profits were taken after 1 % moves, with the rest trailed using ATR-based stops.
No over-trading: only two setups that matched his plan.
Within five trading days, his combined positions delivered +7.36 % return on equity.
“It wasn’t about predicting the news — it was about reacting correctly when the narrative shifted,” he says.
“The IMF report gave the volatility, discipline gave the result.”
Key Lessons from July 2024
Macro shocks create asymmetric opportunities.
Staying informed about events like IMF, Fed, or ECB reports can offer early signals.Patience beats prediction.
Jaxon’s method — waiting for confirmation — prevented emotional entries.Controlled exposure wins in volatile months.
He kept risk per trade under 1 %, allowing flexibility even when the market reversed.
Outlook for the Coming Months
With global growth cooling, forex traders will likely continue to face wide ranges and sudden sentiment flips.
The dollar remains supported by relative strength, but if inflation weakens further, markets could pivot again toward risk-on assets.
According to Jaxon Reid, adaptability will be the key:
“Markets aren’t predictable — they’re reactive. The more you learn to adapt, the more you stay ahead.”
Conclusion
The IMF’s July 2024 report proved once again how macro headlines can shift entire markets in hours.
For disciplined traders like Jaxon Reid, it wasn’t a threat — it was a trigger.
A calculated, patient approach allowed him to transform volatility into profit, closing the month with +7.36 % growth.
