SVET Reports
Monday's Markets Update (January 20, 2025)
On Monday, with markets closed for the holiday, the dollar weakened and gold held steady following Trump's inauguration speech. BTC reached a new ATH in a sudden overnight run driven by sporadic momentum in anticipation of Trump's pro-crypto policies and his inauguration speech mentioning BTC. ETH remained where it was. Trump's official meme token briefly entered the top 8 tokens/coins, with a market cap of $50B reached within 3 days after its launch on Solana, nearly overshadowing Doge.
World Markets
Euro Area construction output surged by 1.4% YoY in November, ending eight consecutive months of contraction. Growth was driven by increases in building and specialized construction activities. While construction increased in some major economies, it contracted in others. 1Y trend: "Down" (EU)
PBoC kept its key lending rates unchanged. Both the one-year and five-year LPR rates remained at record lows. While China's Q4 2024 GDP grew at its fastest pace in 18 months, the PBoC maintained a cautious stance due to renewed pressure on the yuan. 1Y trend: "Down"
Currencies
The dollar index fell nearly 1% to below 108.5 after inauguration. The dollar had declined earlier as reports indicated no immediate tariffs would be imposed. Despite Trump's executive orders, he avoided concrete changes to trade policy. This limited the dollar's decline. 1Y trend: "Up"
Commodities
Gold prices remained above $2,700. While Trump's energy policy could ease inflationary pressures, his economic agenda, including trade policy shifts and renewed focus on fossil fuels, creates uncertainty and supports safe-haven demand. A weaker dollar and expectations of limited Fed rate hikes also bolster gold prices. 1Y trend: "Up"
WTI crude declined, following the announcement of plans to expand domestic crude production. The delay in imposing tariffs on certain countries also provided some market relief. However, uncertainty remains regarding potential adjustments to sanctions on Russian oil. Easing geopolitical tensions in the Middle East further contributed to downward pressure on prices. 1Y trend: "Side"