In the summer of 2022, global markets faced unprecedented turbulence. Inflation surged to record highs, forcing the U.S. Federal Reserve and other central banks to take aggressive action. The Fed raised interest rates faster than at any time in recent decades, triggering a global chain reaction.
The U.S. dollar strengthened sharply, reaching its highest level in 20 years. This caused massive corrections across the forex landscape — the euro fell below parity with the dollar for the first time in two decades, while currencies such as the Japanese yen and British pound came under heavy pressure.
For traders, it was both a challenge and an opportunity. Markets were moving fast, and only those with sharp instincts and disciplined strategies could survive the storm.
Calvin Yuen’s Perspective: “Understanding Policy Means Understanding the Market”
According to Calvin Yuen, senior forex trader at Nexa Level X, the key to success during this volatile period was not predicting the market but understanding the underlying policy shifts.
“The Fed made its stance crystal clear,” Yuen explains. “They were ready to sacrifice short-term growth to fight inflation. Once I saw that, I focused entirely on strong-dollar setups.”
Yuen positioned himself for long trades on USD pairs, particularly USD/JPY and USD/CHF, capitalizing on the momentum of dollar strength. He combined technical breakouts with macro fundamentals — following real-time inflation data and bond yield curves to time his entries precisely.
“When volatility spikes, traders panic,” Yuen continues. “But volatility is exactly where disciplined traders thrive. My focus was on structure, not noise.”
By the end of August 2022, Yuen reported a 10.41% portfolio gain, achieved without extreme leverage — a reflection of measured strategy and calm decision-making.
Lessons from the Turbulence
The events of summer 2022 reshaped the way many traders approached the market. For Yuen, it was a reminder that macroeconomic literacy is a trader’s strongest weapon.
“Charts tell you what’s happening,” he concludes, “but policy tells you why. Once you understand the why, you stop guessing and start trading with confidence.”
