According to sources, the Bank of Japan will likely raise interest rates this week, unless there are shifts in the market upon Trump's assumption of office. The dollar has weakened, while the cryptocurrency bitcoin has reached a record high ahead of Donald Trump's return to the White House later today. Investors are focused on his inaugural speech, which could immediately impact the dollar.
The yen is trading close to its monthly maximum, which was reached on Friday, as traders bet that the Bank of Japan will raise interest rates this week. It is suggested that the trading volume will be lower than usual due to the closure of the American stock market in honor of Martin Luther King Day.
Weak data on inflation in the U.S. and the Federal Reserve's forecasts for lower interest rates slightly attract interest in high-risk assets in recent times. Trump promised to become the 'crypto president.' It is expected that there will be measures taken aimed at strengthening the widespread use of digital assets.
Some analysts caution that delays in the implementation of measures by the U.S. administration may slow the positive impetus. Analysts at Goldman Sachs expect that changes in American policy will strengthen the dollar, but they are wary due to short-term risks in the market expected from the introduction of customs duties.
The dollar index, which measures the performance of the American currency against six other major currencies, fell by 0.32% to 109.08. Last week it achieved a 26-month maximum at 110.17. The euro rose 0.39% to 1.031 dollars but remains close to the two-week minimum that was reached last week.
According to analysts at the research center Barclays, Sidjay Rajadhyaksha after announced assessments that could immediately impact the markets: "If 'The law on international economic emergency' is used for trading purposes, the markets should regard this as a clear signal from the United States to introduce widespread customs duties."
The law on international economic emergency is a federal law of the U.S. that grants the president the right to regulate economic transactions in response to extraordinary and exceptional threats. On the financial front, Rajadhyaksha noted: "We will monitor whether President Trump represents a position on the financial stimulus." The yen traded at 156.11 to the dollar in recent trades, not significantly deviating from the monthly maximum at 154.98, which was achieved on Friday.
