It’s Inauguration Day and Martin Luther King Day, a federal holiday that means U.S. markets are closed. The incoming president is reportedly set to sign 100 executive orders immediately and some of them will likely address border security and tariffs. Will tariff action start aggressively (25%?) and retreat as compliance emerges, says Shaun Osborne, chief FX strategist at Scotiabank.
US markets closed for MLK Day
“Or will tariffs start low and progressively increase to force the pace of negotiations? The positive price action in the USD since the US presidential election result suggests to me that markets have already considered a tariff regime of — very roughly — 10-15% imposed on major US trading partners, so somewhere in the middle of those two extremes, which may mean profit-taking if tariffs are light at first or more profits if it is a forceful approach.”
“The USD remains fairly fully valued and the long position is crowded, tipping the risks towards decent corrective action in the USD in response to a low or slow starting point for tariffs, or if tariff news remains absent in the early days of Trump 2.0.”
“The USD has fallen a bit in overnight trading and the price action alone suggests the bull run may be tiring a bit; the DXY eased last week overall for its first weekly loss since early December and “The index is resting right at the seven-week trend support at 108.95 this morning. A break below here may trigger a short-term correction at least in the USD’s recent gains.”
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.