Today marks Donald Trump’s return to office, and while the inauguration brings its share of spectacle, the real focus for traders lies in its potential market impacts and US Dollar movements. Early reactions are already unfolding, with Bitcoin pulling back from all-time highs while holding above $100K, oil prices declining as Trump promises increased domestic production, and the US Dollar Index experiencing a significant 150-pip surge overnight. Major currency pairs like the GBP/USD and EUR/USD are testing key support levels, raising questions about potential corrections.
Trump’s campaign promises are at the heart of these shifts. His tariff rhetoric, while bold, is already showing signs of being scaled back. Much like his earlier ventures—such as the infamous “Trump Steaks”—these promises may ultimately prove less aggressive than initially advertised. This uncertainty is reflected in the US Dollar’s recent sell-off.
On immigration, Trump’s plan to deport millions of undocumented workers and reinvest in his border wall also faces practical challenges. With unemployment at 4% and a rising minimum wage, removing large segments of the workforce could lead to labor shortages and inflationary pressures, further complicating the economic outlook.
Energy markets are feeling the effects of Trump’s push for increased oil production. In anticipation of higher supply, oil prices have already dropped in recent days, and further declines remain possible as policies take shape.
As Trump’s presidency begins, traders must stay alert to the evolving landscape. His policies, while ambitious, are already being tempered by practical realities, creating opportunities and risks across markets. The coming months promise volatility, making it essential to monitor these developments closely.
RISK WARNING: Foreign exchange and derivatives trading carry a high level of risk. Before you decide to trade foreign exchange, we encourage you to consider your investment objectives, your risk tolerance and trading experience. It is possible to lose more than your initial investment, so do not invest money you cannot afford to lose。 ACY Securities Pty Ltd (ABN: 80 150 565 781 AFSL: 403863) provides general advice that does not consider your objectives, financial situation or needs. The content of this website must not be construed as personal advice; please seek advice from an independent financial or tax advisor if you have any questions. The FSG and PDS are available upon request or registration. If there is any advice on this site, it is general advice only. ACY Securities Pty Ltd (“ACY AU”) is authorised and regulated by the Australian Securities and Investments Commission (ASIC AFSL:403863). Registered address: Level 18, 799 Pacific Hwy, Chatswood NSW 2067. AFSL is authorised us to provide our services to Australian Residents or Businesses.
Recommended Content
Editors’ Picks
EUR/USD drops below 1.0800 on Trump's 'Liberation Day'
EUR/USD is back in the red below 1.0800 in the early European morning on Wednesday as investors rush for the safe-haven US Dollar, aniticpating US President Donald Trump’s long-threatened “reciprocal” tariffs package, due to be announced at 20:00 GMT.
GBP/USD trades with caution above 1.2900, awaits Trump’s tariffs reveal
GBP/USD is trading with caution above 1.2900 early Wednesday, struggles to capitalize on the overnight bounce amid resugent haven demand for the US Dollar. Traders remain wary heading into the US 'reciprocal tariffs' announcement on "Liberation Day' at 20:00 GMT.
Gold price remains close to record high amid concerns over Trump’s reciprocal tariffs
Gold price regains positive traction amid concerns about Trump’s aggressive trade policies. Fed rate cut bets keep the USD bulls on the defensive and further benefiting the XAU/USD pair. A broadly stable risk sentiment might cap gains ahead of Trump’s tariffs announcement.
Bitcoin, Ethereum and Ripple brace for volatility amid Trump’s ‘Liberation Day’
Bitcoin price faces a slight rejection around its $85,000 resistance level on Wednesday after recovering 3.16% the previous day. Ripple follows BTC as it falls below its critical level, indicating weakness and a correction on the horizon.
Is the US economy headed for a recession?
Leading economists say a recession is more likely than originally expected. With new tariffs set to be launched on April 2, investors and economists are growing more concerned about an economic slowdown or recession.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.