US President Donald Trump is set to be sworn in for his second term, sparking concerns about market volatility. With US markets closed for Martin Luther King Day, investors will focus on foreign exchange and futures markets.
Trump’s presidency has historically been marked by increased market uncertainty due to his unpredictable policies. The greenback has surged in recent weeks, but traders are questioning whether it can hold its ground if Trump takes a more cautious approach. Tariffs and inflation concerns remain uncertain.
The dollar fell against cautious Asian trade on Friday, while investors have been selling bonds and buying dollars since September, anticipating growth and potential policy shifts. Trump’s inauguration is expected to be marked by a series of executive orders, including those aimed at immigration and regulations.
Markets will be watching for signs of Trump’s policy direction, particularly regarding China and the US-China trade relationship. With cold weather forcing the oath-taking ceremony indoors for the first time in 40 years, investors may be on edge. Bitcoin has surged over 45% since Trump’s election but fell by 3% to $101,800 ahead of his inauguration.
The market’s reaction will depend on how Trump navigates his second term and whether he adopts a more measured approach than expected.
Source: https://www.reuters.com/markets/europe/global-markets-view-europe-2025-01-20