The big day has finally arrived. Financial markets are on tenterhooks to see what executive orders newly elected US President Donald Trump will issue on his first day. There is a lot of focus on immigration controls and declaring a national energy emergency to allow for more oil and gas production in the US, says Chris Turner, FX analyst at ING.
DXY will have another test of 110 this week
“FX markets are more interested in what he has to say about tariffs and what kind of pain the Oval Office plans to inflict on major trading partners. At last week’s nomination hearings, incoming Treasury Secretary Scott Bessent said tariffs would be needed to address unfair trade practices, support government revenue and use them as a negotiating tool.”
“As for what is currently priced for tariffs by financial markets, we find online prediction websites such as Polymarket and Kalshi quite useful. Polymarket is keeping a book on which countries will receive US tariffs in the future. Trump’s first week. China is rated at 56%, Mexico at 54%, Canada at 45% and the European Union at just 7%. There is also the case – using Scott Bessent’s comments on tariffs. as negotiating tools – for the new administration to start strong on tariffs from the beginning.”
“Price action could be quite subdued today as US markets are closed for the Martin Luther King public holiday. And the US data calendar is quiet this week, especially with the Federal Reserve in its blackout period before the next FOMC meeting on January 29. But overall, we are not confident in forecasting a dollar decline due to market positioning and instead see room for the DXY to have another test of 110. this week.”
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.
