Donald Trump is set to assume the presidency at 1700 GMT, causing markets to focus on his inauguration speech for cues on his policy agenda. The U.S. dollar dipped as anticipation grew for insights into Trump's immediate plans upon his return to the White House.
The yen stood strong near a one-month high due to speculation that the Bank of Japan might increase interest rates at its forthcoming policy meeting. If implemented, this move would mark the first rate hike since July and push borrowing costs to levels not seen since the 2008 global financial crisis.
Trading activity remained subdued as the U.S. celebrated Martin Luther King Jr. Day. Cryptocurrency markets appeared optimistic, expecting Trump to introduce executive orders aimed at easing regulations and promoting broader adoption of digital assets.
Trump has expressed support for the crypto industry, having recently launched a digital token that briefly surged in value. The BOJ could raise rates this week, with Governor Kazuo Ueda signaling a readiness for monetary policy tightening during the upcoming meeting.
Trump's campaign promises to the crypto industry have generated excitement, reflected in Bitcoin's significant uptrend since the U.S. election. Meanwhile, markets are on edge for the revelation of Trump's initial policy actions, particularly regarding potential immigration restrictions.
Goldman Sachs strategists predict favorable U.S. policy adjustments that could strengthen the dollar long-term. The yen remained strong, near a recent high, reflecting expectations of a BOJ rate hike. Geopolitical tensions slightly relaxed as Hamas and Israel exchanged prisoners, initiating a ceasefire in the Middle East.
