4 min readThe latest President of the United States is being sworn into office today, marking the second term of Donald Trump as President.
Since Trump’s victory was announced in early November, there has been a significant surge in financial market activity, with substantial increases in both volume and liquidity. Many assets in the cryptocurrency market have reached new all-time highs, entering uncharted price discovery territories. Meanwhile, the S&P 500 and NASDAQ have continued to climb, setting fresh record highs and demonstrating sustained strength.
Now, the pressing questions are: how will the markets respond to Trump officially assuming office? And will he follow through on the executive orders and policies he promised during his campaign?
DOLLAR INDEX (DXY):
Ahead of Trump’s official inauguration, the Dollar Index has experienced a significant decline of 1.36%, which has corresponded to a 1.58% rise in the EUR/USD.
EURO VS DOLLAR (EUR/USD):
A closer examination of the technicals reveals that the price has risen from around 1.02500, where it was holding support and trading earlier this morning. I will be monitoring closely to see how the price reacts following the inauguration to see whether it continues to move higher or reverses and starts trading lower.
GOLD VS DOLLAR (XAU/USD):
Gold has also been an intriguing commodity to track ahead of this announcement. Currently trading just above $2,700, it recently broke through an internal descending trend line. I will be watching closely to see how the price responds to this internal resistance area following the announcement.
S&P 500 (SDX):
The S&P 500 has experienced a quiet start to the day, likely due to the public holiday in the U.S. I anticipate increased volatility starting tomorrow. Currently trading above $6,000, I’m interested to see if the momentum can resume, pushing prices higher toward new all-time highs (ATHs).
BITCOIN (BTC/USD):
Bitcoin has been the most active asset today ahead of the announcement of Trump officially being sworn in as President. Currently trading above $106,000, it reached new all-time highs (ATHs) earlier today at around $109,000 before encountering short-term resistance in this internal resistance area. This event is shaping up to be one of the most highly anticipated moments for Bitcoin and the cryptocurrency market as a whole.
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