The U.S. Forex Outlook is extremely volatile and a novice investor might get flustered with the volatility and suffer huge loss The US Dollars are expected to experience short-term downfall as Fed rate climbs. The whole economy is dependent on feds withdrawal of motivation and how the tightening cycle hits the US recovery. It is evident that the US economy will shrink in the second half of 2010 but for the month of March 2010, the stability is expected. Forex had been attracting a lot of players in U.S. market from stocks, bonds and commodity markets but recently the trend has changed and people are hitting back to gold investments and stock market. The interbank trading has also been rough for a past couple of months. The sheer size of forex market is now going bearish and the Fed, instead of tightening policy should give a break to the still recovering U.S. Economy.