Starting Trump 2.0 with a firm USD – DBS

US President-elect Donald Trump’s inauguration on Monday should underpin the USD Index (DXY) this week, DBS' Senior FX Strategist Philip Wee notes.

Fed to become more cautious on rate cuts

"Trump had pledged to impose tariffs on his first day of office, particularly on goods entering the US from Canada, Mexico, and China. We expect the Fed to keep rates unchanged at 4.25-4.50% at the FOMC meeting on January 28-29."

"The Fed will likely become more cautious on rate cuts from Trump’s tariffs lifting US inflation expectations. Treasury Secretary Yellen warned that the reinstated statutory debt limit would be reached on January 21, with her agency taking extraordinary measures through March 14."

Jan 20, 2025

USD slips ahead of inauguration – Scotiabank

It’s inauguration day and Martin Luther King's Day — a federal holiday which means US markets are closed. The incoming president is reportedly set to sign 100 executive orders right out the gate and some of those are likely to address border security and tariffs.

US President Trump to stop short of imposing day-one tariffs – Reuters

US President-elect Donald Trump, who takes office on Monday, will reportedly refrain from announcing day-one tariffs at his inauguration address, per Reuters.