Today is the day. Donald Trump is about to take the oath of office as the 47th US President. He has ambitious plans for the US economy. Let’s take a look at how traders are preparing for the Trump office.
First and foremost, the American currency. The US dollar stands to gain significantly if Trump delivers on his promises — tax cuts, tariffs and deregulation are all bullish signals for the dollar. Against this backdrop, forex speculators expect the dollar to maintain its dominance in the forex market for the foreseeable future. However, there are other factors at play that Trump cannot control.
The Federal Reserve operates independently of the President. If Trump’s “America First” policies lead to out-of-control inflation, the Fed might rethink its strategy of lowering interest rates.
This week, the U.S. dollar started trading on a relatively quiet note, as traders awaited Trump’s inauguration. The EURUSD pair began the week modestly higher, rising 0.4% to $1.0315.
Who else is supposed to win from Trump’s presidency? You guessed it — crypto enthusiasts. With Trump’s inauguration today and his promise of making America the “crypto capital of the world,” Bitcoin rallied above $109,000, smashing its previous record high.
Traders are pricing in the execution of pro-crypto orders, a cabinet filled with crypto advocates, and even the creation of a Bitcoin strategic reserve — where the White House plans to hold Bitcoin.
But that’s not all. Here’s the cherry on top: Donald Trump has launched a meme coin. These coins often generate buzz, attract significant attention and may or may not lead to speculative bubbles that leave buyers with steep losses.
The TRUMPUSDT token, built on the Solana blockchain, is now circulating across exchanges. First announced Friday night, the token quickly reached a market cap of over $20 billion, skyrocketing 1,000% to trade near $70 apiece. However, the token has since pulled back, losing about 30% of its value. Meanwhile, Solana price has surged 63%, hitting a record high of $292 early Sunday.
Despite the bullish sentiment, there’s plenty of room for caution. The classic market adage, “buy the rumor, sell the news,” could come into play as Trump settles into office. Some analysts are advising increased vigilance during this period.
