The dollar is falling and stocks are rising as Trump's second term approaches
The US dollar is declining at the beginning of the trading week on Monday in anticipation of Donald Trump's return to the White House, where his inauguration speech later in the day will be the main focus for investors hoping to decipher his immediate policies, as trading volume is expected to be minimal due to the closure of US markets on the occasion of the Martin Luther King Jr. Day holiday.
DXY
The dollar index, which measures the US currency against six currencies, fell, but remains close to the 26-month high it touched last week at 110.17 levels.
The index has risen by 4% since the election as traders predict that Trump's policies will boost growth but will also be inflationary, necessitating a longer interest rate hike.
EURUSD
The euro rose against the dollar today, but remains close to the two-year low that it hit last week as threats of tariffs increased.
USDJPY
The dollar is fluctuating with the start of the week trading in a downward slant, as traders are betting that the Bank of Japan will raise the interest rate this week.
The bank's governor Kazuo Ueda and his deputy said last week that the central bank will discuss whether to raise the interest rate, indicating the intention to raise borrowing costs at the policy meeting on January 23-24.
If this happens, the Bank of Japan's increase will be the first since last July.
BTCUSDT
Cryptocurrency investors remain in a festive mode, waiting for Trump's executive orders aimed at reducing regulatory obstacles and promoting widespread adoption of digital assets, as bitcoin has risen to today, achieving a new historical peak at the levels of 109,500, where it has risen by more than 80% since the US elections in early November until today.
Trump has promised to be the head of cryptocurrencies, and already on Friday he launched a digital currency bearing his name, the price of which rose above the 70-dollar levels at one time with a market value of more than 15 billion dollars, and is now trading near the 60-dollar levels.
