Donald Trump's Inauguration:

Markets are closely monitoring the policy directions of President Trump

By Farah Mourad | 20 January 2025

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Market open
  • EUR/USD pair climbed above 1.0300

  • Gold prices near $2,69

  • Crude oil prices have declined

The highlight of the day revolves around the swearing-in of Donald Trump as the President of the United States. As markets await clarity on his policy directions, there is heightened attention on his potential executive actions within his initial days in office. Historical precedence suggests that even preliminary announcements or non-legislative measures could shift market sentiment significantly.

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EUR/USD

The EUR/USD pair reclaimed the 1.0300 level early in the European session, benefiting from broader market optimism and a weakened US Dollar. Traders are navigating the quieter holiday conditions with anticipation of potential policy signals from President Trump’s inaugural address.

Commodities

Gold prices are trading near $2,695 as the precious metal remains under pressure from a strengthening US Dollar. Investors are weighing last week’s softer-than-expected US inflation data, which has fueled speculation about the possibility of multiple Federal Reserve rate cuts.

Uncertainty surrounding Trump’s trade and economic policies could introduce fresh volatility to the gold market.

Meanwhile, silver prices are subdued as geopolitical tensions ease. However, speculation around rising inflation tied to potential trade tariffs may provide long-term support.

Energy Markets

Crude oil prices dipped as market participants remain cautious about the incoming administration's stance on energy policy. Speculation persists over whether sanctions on Russia’s energy sector will be relaxed, introducing uncertainty for global energy trade flows. Simultaneously, easing geopolitical strains in the Middle East, marked by recent prisoner exchanges, have also contributed to lower oil price volatility.

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